A first systematic, model-based analysis of the environmental fiscal reform in Germany is undertaken with an econometric model and an empirical general equilibrium model. It indicates moderate but slightly positive effects on employment, energy consumption and CO2 emissions. The influence on economic growth is very low; employment is growing slightly, while energy consumption and CO2 emissions are ...
Tax competition for a mobile factor is different in "new economic geography settings" compared to standard tax competition models. The agglomeration rent which accrues to the mobile factor in the core region can be taxed. Moreover, a tax differential between the core and the periphery can be maintained. The present paper reexamines this issue in a setting which, in addition to the core-periphery equilibria, ...