Structural fund, endogenous move and commitment

Eckel, Carsten; Han, Yutao; Hynes, Kate und Zhang, Jin (2021): Structural fund, endogenous move and commitment. In: International Tax and Public Finance, Bd. 28, Nr. 2: S. 465-482

Abstract

In this paper, we extend the study on combined tax and infrastructure competition by endogenizing the timing of decisions made by asymmetric countries. We consider how a structural fund affects the endogenous move decision and show that the poor country prefers to be a follower only when the production function is sufficiently concave. We also analyse the effect of the structural fund on total welfare and design a commitment game to ensure that the socially optimal outcome is achieved.

• Dokumententyp: Zeitschriftenartikel
• Fakultät: Volkswirtschaft
• Themengebiete: 300 Sozialwissenschaften > 330 Wirtschaft
• ISSN: 0927-5940
• Sprache: Englisch