Faculty of Economics and Business Administration Publications Database

Public Procurement in the Presence of Capital Taxation

Authors:
Source:
Volume: 31
Number: 2/3
Pages: 339 - 353
Month: 4
ISSN-Print: 0166-0462
Year: 2001
Keywords: Procurement; Tax competition; Federalism
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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