The selection principle and market failure in systems competition

European System of Private Laws: An Economic Perspective

“…In this case, regulatory competition occurs when consumers choose between the products of different countries. The fear of a race to 20 For this broad discussion on regulatory competition, see Oates and Schwab (1988), Revesz (1992), Vanberg and Kerber (1994), Woolcock (1994), Sun and Pelkmans (1995), Bratton et al (1996), Sinn (1997), Vogel (1997), Van den Bergh (1998, 2002, Garcimartin (1999), Ogus (1999), Trachtman (2000), Esty and Geradin (2001a), Heine and Kerber (2002), Josselin (2002, 2003), Kieninger (2002), Ott and Schäfer (2002), Kerber and Budzinski (2003), and Kerber and Grundmann (2006). 21 For yardstick competition in the economic theory of federalism see Salmon (1987), Besley and Case (1995), Wrede (2001), and Bodenstein and Ursprung (2005).…”

Globalization, welfare regimes and social protection expenditures in Western and Eastern European countries

“…Zodrow and Mieszkowski (1986); Sinn (1997)). 2 More specifically, the share of public consumption goods in total public expenditures might decrease as a large share is frequently seen as an impediment to international competitiveness.…”

Competition in Business Taxes and Public Services: Are Production-Based Taxes Superior to Capital Taxes?

“…The two assumptions together guarantee that the local government anticipates an outflow of capital if it unilaterally increases the tax rate on capital. Noiset 1995, Sinn 1997, Matsumoto 1998, and Dhillon et al 2007 all question this latter assumption, and instead do not rule out the case in which the capital tax results in more public services which raise the productivity of capital sufficiently to make jurisdictions believe that by raising taxes they can attract more capital. For example, Dhillon et al replace ZM's condition with a weaker condition and show that a capital tax equilibrium exists and that it may involve underprovision, efficient provision, or overprovision of public services.…”

“…A broadly similar approach is utilized by Sinn (1997), who assumes that each unit of capital must use a public service once before it can be utilized in production (e.g., capital must make a single trip on a congestible public highway before being placed in service), again implying that an appropriately set property tax on capital functions as a user 1 Oates and Schwab also assume that a local public good is provided to residents of the jurisdiction and financed with head taxes, following the approach utilized in the basic Tiebout model. 3 charge/congestion fee for the public service and ensures efficiency in the allocation of resources to business public services.…”