Read full paper at: http://www.scirp.org/journal/PaperInformation.aspx?PaperID=52095#.VIVBx2fHRK0 Author(s) Gerasimos T. Soldatos Affiliation(s) American University of Athens, Athens, Greece . ABSTRACT Viewing local finances under the approach to private-public consumption complementarity, we conclude that foot voting and tax competition become extinct when the (capital) tax structure across jurisdictions is the one forging close ties between the burgher and his/her jurisdiction. The attachment of the burgher to the local public goods offered and to the local business activity prevents labor and capital mobility. The optimal number of jurisdictions is that which is conducive to the adoption of that local taxation...
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