Inter-jurisdictional fiscal competition: a review of the literature and policy recommendations

This paper surveys the literature on fiscal competition. We consider tax and expenditure competition in a more general set up where different jurisdictions within a federation may compete in the provision of public goods in order to attract some residents (Tiebout, 1956) and expel others (Brueckner, 1999); and/or for business. We address the vast literature on welfare gains or losses of these types of competition. Then, we discuss the empirical evidence, focusing on estimates of the sensitiveness of production factors to tax differentials and on the importance of the strategic interdependence among jurisdictions. We combine econometric studies with some case studies. Last we discuss the design of mechanisms to cope with fiscal competition, especially under a more global environment where factors become more mobile.

The demonism of creation in Goethe's philosophy

Goethe's philosophy of creativity revolves around what he called das Dämonische. This essay is not meant as a definition or an explanation of demonic creation, but instead presents a demonic work par excellence, as the term "demonic" is defined by Goethe in the Elegy from Marienbad. The process of the creation of this work, as it is described by Goethe, also represents a strange exorcism, as the entire daemonic creative force of the author is transposed in this lyrical masterpiece of German and universal literature. After writing the Elegy Goethe, it is no longer demonic.