Cover -- Contents -- Introduction -- Chapter 1: Taxation and debt in European countries -- 1. Tax systems in theory -- 2. The tendencies in European taxation -- 3. The indebtedness problem -- 4. The tax adjustment -- Chapter 2: The static tax competition models with debt -- 1. Introduction -- 2. The one-country static model of taxation -- 3. The optimal taxation in the one-country model -- 4. Basic assumptions of Nash equilibrium model -- 5. The new economic geography approach -- 6. Transaction tax on bonds income -- 7. Common tax base with formula apportionment -- Chapter 3: Dynamic model of fiscal solvency with capital tax shifting -- 1. Introduction -- 2. The model -- 3. The numerical analysis -- Chapter 4: Spatial modeling of fiscal policy and debt -- 1. Introduction -- 2. The measurement of debt and tax changes -- 3. Dataset -- 4. Spatial modeling of debt determinants -- 5. The implications from the model results for the tax-mix -- 6. Conclusions -- Chapter 5: Fiscal policy recommendations -- References.