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Dépenses publiques, localisation des capitaux et concurrence fiscale : une modélisation en économie géographique

Abstract : This work envisages effects of fiscal competition in terms both tax rate and public spending on the spatial distribution of economic activities.
We explain existence of tax differential between European countries by agglomeration effects which are absent of the traditional literature on the fiscal competition.
The concentration of economic activities is studied with the construction of an economic geography model integrating the effects of public spending on the competition between States. The public spending are considered in level and in their composition. We apprehend fiscal competition between governments which use public expenditure to strengthen the attractiveness of their locality. The model determines, in an analytical way, the optimal share of the public expenditure having to be devoted to the firms to maximize the agglomeration rent. Finally simulations are led to replace the results obtained in an European point of view.
The model shows a greater sensitivity of mobile capital to variations of agglomeration rent, and thus to the public expenditure, than those related to movements of tax rate. ¶By allocating its tax revenues to public investments and infrastructures, the governments support agglomeration of economic activities and can, consequently, preserve differentiated tax rates.
The conclusion establishes that it is possible to maintain industrial activities in a region which presents at the same time a high level of taxation and a public spending policy adapted to mobile factors. This situation exists as long as the tax differential is compensated with a positive agglomeration rent. To maximize this rent, the governments look for the optimal distribution between public spending to all the residents and public spending more specifically intended for the mobile factors.
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Submitted on : Monday, September 24, 2007 - 2:26:23 PM
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  • HAL Id : tel-00174469, version 1



Catherine Billard. Dépenses publiques, localisation des capitaux et concurrence fiscale : une modélisation en économie géographique. Economies et finances. Université Panthéon-Sorbonne - Paris I, 2006. Français. ⟨tel-00174469⟩



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