Horizontal and vertical externalities: An overview of theoretical and empirical studies

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2004

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Urban Public Economics Review




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Thierry Madiès et al., « Horizontal and vertical externalities: An overview of theoretical and empirical studies », Urban Public Economics Review, ID : 10670/1.653039...


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Academic literature in public finance has recently focused on horizontalexternalities coming from interjurisdictional tax competition –amongsimilar types of local governments– as well as vertical externalitiesarising from interactions between two overlapping governments whichshare the same tax base. The purpose of this paper is to provide a surveyrelating to both theoretical and empirical aspects of these two kinds ofexternalities that have strong implications for local governmentfinance.

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