Equilibrium in fiscal competition games from the point of view of the dual.
Papers that examine fiscal competition for mobile factors of production commonly employ simultaneous move games between two states and focus on the inefficiency of the equilibria. Most often, the existence of the equilibrium is left unexplored. By examining decision making by governments that make...
| Main Authors: | , |
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| Format: | Working Paper |
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School of Economics and Finance, Curtin Business School
2008
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| Online Access: | http://hdl.handle.net/20.500.11937/38173 |
| _version_ | 1848755248732045312 |
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| author | Petchey, Jeffrey Shapiro, P. |
| author_facet | Petchey, Jeffrey Shapiro, P. |
| author_sort | Petchey, Jeffrey |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | Papers that examine fiscal competition for mobile factors of production commonly employ simultaneous move games between two states and focus on the inefficiency of the equilibria. Most often, the existence of the equilibrium is left unexplored. By examining decision making by governments that make only constrained efficient choices, we derive sufficient conditions for the existence of equilibria when there are multiple policy instruments, multiple mobile factors and many different production processes. Convexity of the minimum cost function, "dual" to the factor preferences and production function primitives, is sufficient to ensure the existence of equilibrium. We also find that equilibrium may not exist because of the economies of scale inherent in provision of public goods which benefit mobile factors. |
| first_indexed | 2025-11-14T08:53:17Z |
| format | Working Paper |
| id | curtin-20.500.11937-38173 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T08:53:17Z |
| publishDate | 2008 |
| publisher | School of Economics and Finance, Curtin Business School |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-381732017-01-30T14:13:15Z Equilibrium in fiscal competition games from the point of view of the dual. Petchey, Jeffrey Shapiro, P. cost functions duality fiscal competition public goods existence Papers that examine fiscal competition for mobile factors of production commonly employ simultaneous move games between two states and focus on the inefficiency of the equilibria. Most often, the existence of the equilibrium is left unexplored. By examining decision making by governments that make only constrained efficient choices, we derive sufficient conditions for the existence of equilibria when there are multiple policy instruments, multiple mobile factors and many different production processes. Convexity of the minimum cost function, "dual" to the factor preferences and production function primitives, is sufficient to ensure the existence of equilibrium. We also find that equilibrium may not exist because of the economies of scale inherent in provision of public goods which benefit mobile factors. 2008 Working Paper http://hdl.handle.net/20.500.11937/38173 School of Economics and Finance, Curtin Business School fulltext |
| spellingShingle | cost functions duality fiscal competition public goods existence Petchey, Jeffrey Shapiro, P. Equilibrium in fiscal competition games from the point of view of the dual. |
| title | Equilibrium in fiscal competition games from the point of view of the dual. |
| title_full | Equilibrium in fiscal competition games from the point of view of the dual. |
| title_fullStr | Equilibrium in fiscal competition games from the point of view of the dual. |
| title_full_unstemmed | Equilibrium in fiscal competition games from the point of view of the dual. |
| title_short | Equilibrium in fiscal competition games from the point of view of the dual. |
| title_sort | equilibrium in fiscal competition games from the point of view of the dual. |
| topic | cost functions duality fiscal competition public goods existence |
| url | http://hdl.handle.net/20.500.11937/38173 |