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We bridge the gap between the standard theory of growth and the mostly static theory of corruption. Some public … institutional parameters: the "technology of corruption" is the ease with which rent-seekers can capture a proportion of public … corruption are different according to the constraints that are binding at equilibrium. In particular, the effect of judicial …
Persistent link: https://www.econbiz.de/10005043278
Corruption is thought to prevent poor countries from catching-up. We analyze one channel through which corruption …-seeking. At equilibrium, the intensity of corruption and the structure of public investment are determined by the predatory … without corruption in which there is no effective corruption yet still the possibility of corruption distorts the allocation …
Persistent link: https://www.econbiz.de/10005008244
This paper reexamines the work of Kempf and Rota-Graziosi (J. Pub. Econ. 94: 768-776, 2010), which shows that leadership by the small region is the risk dominant equilibrium under the endogenous timing game. They obtain this result in a model where the asymmetry among countries translates into...
Persistent link: https://www.econbiz.de/10011228289
Multinational companies can shift profit and income between branches in order to reduce the overall tax liabilities of the company. The result is a tax competition between countries. In this paper we consider the sequential choice of tax rates to illustrate the potential effects of tax...
Persistent link: https://www.econbiz.de/10011228295
We develop a model of commodity tax competition with monopolistically competitive internationally mobile firms, transport costs, and asymmetric country sizes. We investigate the impacts of non-cooperative tax setting, as well as of tax harmonization and changes in the tax principle, in both the...
Persistent link: https://www.econbiz.de/10005042811
Most work on tax competition argues that mobile factors tend to be undertaxed except if there is coordination of tax policies. Full coordination is not however always feasible, and as a consequence some measures of partial coordination have been proposed such as minimal witholding taxes on...
Persistent link: https://www.econbiz.de/10005043217
In this paper, we analyse tax harmonisation in the framework of two countries asymmetric in their capital-labour endowment. In the first part, countries play a non-cooperative game and we examine how na- tional fiscal policies are decided according to majority voting. At the Nash equilibrium,...
Persistent link: https://www.econbiz.de/10005043250
In this paper we set up a symmetric two-country model with trade costs and international ownership to study the transfer pricing decisions by two multinationals operating in markets with Cournot competition. We let governments choose both the corporate profit tax rate and the level of...
Persistent link: https://www.econbiz.de/10005008645
The aim of this paper is to investigate the implications of increased student mobility on the level of education provided after opening the borders between two similar countries. As a preliminary result, it will be shown that some public provision of mandatory education can be welfare improving...
Persistent link: https://www.econbiz.de/10005065345
This paper analyses the effect of consumption taxes on unemployment in presence of wage rigidity and compares non-cooperative tax setting under the destination and origin principle of commodity taxation. We show that, in a two country economy, consumption taxes negatively affect domestic...
Persistent link: https://www.econbiz.de/10005065383