This paper argues that, because governments are able to relax tax competition through public good differentiation, traditionally high-tax countries have continued to set taxes at a relatively high rate even as markets have become more integrated.
Geography
Link
http://econpapers.repec.org/scripts/redir.pl?u=http%3A%2F%2Fwww.vanderbilt.edu%2FEcon%2Fwparchive%2Fworkpaper%2Fvu06-w01.pdf;h=repec:van:wpaper:0601