According to Hines and Summers [2009], globalization increases the mobility of capital and labor across countries. Consequently,
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According to Hines and Summers [2009], globalization increases the mobility of capital and labor across countries. Consequently, taxes on these inputs create substantial excess burdens.
Hines and Summers suggest that countries should enter into agreements to limit these inefficiencies by standardizing their tax rates.
Use the Tiebout model as a framework for addressing the efficiency implications of this proposal.
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