Interjurisdictional Tax and Policy Competition: Good or Bad for the Federal System

摘要

The report is intended to be both a review of the theoretical and empirical literature on interjurisdictional competition and a conceptual exploration of the topic. One of the most important issues related to interjurisdictional competition is an evaluation of its benefits and costs within the American federal system. The report focuses on competition among states and among local general governments, or interstate and interlocal competition. These types of competition will be referred to as interjurisdictional competition. Elsewhere, certain analysts refer to these forms of competition among governments as horizontal intergovernmental competition or horizontal competition. The major aim of the report is to improve understanding of the nature, benefits, and costs of interjurisdictional competition. It would require further study, building on this report, to evaluate particular policy proposals that would modify the extent of interjurisdictional competition.