2006
Yvon Rocaboy et al., « Tax competition among municipalities in Finland », HAL-SHS : économie et finance, ID : 10670/1.c8tii5
Regional and local public sectors are often characterized by revenue equalization systems that even out tax base differentials between rich and poor jurisdictions. In such a context, the question arises about the existence of strategic interaction among local governments. This paper uses Finnish municipality data to test for local tax competition. We show that despite a strong revenue equalization system, Finnish municipalities still behave strategically in terms of tax setting.