Public Procurement In The Presence Of Capital Taxation

@inproceedings{Weichenrieder2001PublicPI,
  title={Public Procurement In The Presence Of Capital Taxation},
  author={Alfons Weichenrieder},
  year={2001}
}
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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