This paper analytically derives the conditions under which the slope of the tax reaction function is negative in a … classical tax competition model. If countries maximize welfare, we show that a negative slope (reflecting strategic … parameter configurations. The strategic tax response is crucial for understanding tax competition games, as well as for …

payroll tax reduction. Our results show that 55% of the respondents spend the extra money, indicating considerable potential … for tax changes to affect consumption and economic activity. Our analysis of the socio-demographic and economic … determinants of consumption responses suggests that temporary and permanent tax changes have a similar impact, that interest rates …