Public Procurement in the Presence of Capital Taxation


Weichenrieder, Alfons J.


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URL: http://ub-madoc.bib.uni-mannheim.de/603
URN: urn:nbn:de:bsz:180-madoc-6035
Document Type: Working paper
Year of publication: 1999
The title of a journal, publication series: None
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: H57 H77 ,
Subject headings (SWD): Föderalismus , Steuerwettbewerb , Steuerharmonisierung
Abstract: The paper considers governments' public procurement decision as a way of influencing industry structure. In a federation in which capital is mobile and capital taxation is harmonized, a home bias in public procurement can potentially be explained as an effort to increase the capital intensity of local production and to attract taxable capital. As a result, governments may prefer domestic firms to more efficient foreign firms.
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