July 2004
Intermediate to advanced
1082 pages
39h 18m
English
Content preview from Handbook of Regional and Urban Economics
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Chapter 57
Factor Mobility and Redistribution
Helmuth Cremer 1helmut@cict.fr University of Toulouse, Toulouse, France.
1Also affiliated at GREMAQ and IDEI
Pierre Pestieau 2p.pestieau@ulg.ac.be CREPP, University of Liège, Liège, Belgium.
2Also affiliated at CORE, CEPR and Delta
JEL classification: H21, H23, H71, H77, R13, R51
Abstract
This chapter reviews recent theoretical work on the effect of factor mobility and the ensuing tax competition on the capacity of governments to raise revenue and redistribute income. It focuses on three issues: the relevance and limitations of the “race to the bottom” result, the benefits and pitfalls of partial coordination and the incidence of factors mobility on social security systems.
Keywords ...