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particular, for a given coalition structure we study to what extend the stability of tax agreements is affected by the coalitions … means of a repeated game setting employing simple trigger strategies and we allow a sub-coalition to deviate from the … coalitional equilibrium. For a given form of punishment we are able to rank the stability of different coalition structures as …
Persistent link: https://www.econbiz.de/10010319960
The literature on tax competition generally concludes that international coordination of capital taxes among symmetric … cooperatively. The introduction of tax coordination cannot remove the incentive to compete for foreign capital, but simply shifts it … to the election stage. The paper proves that with standard specifications of the utility functions, coordination leads to …
Persistent link: https://www.econbiz.de/10010301210
endowments. We show that regardless of the structure of the coalition (i.e., any group of countries), whether partial tax …
Persistent link: https://www.econbiz.de/10010274903
provision of public goods and with it the welfare of all countries can be enhanced via tax coordination. Based on the standard … Zodrow-Mieszkowski-Wilson tax-competition model this paper analyses the conditions under which tax coordination by a group of … countries is self-enforcing. It is shown that there always exists a rather small stable tax coalition. For some subset of the …
Persistent link: https://www.econbiz.de/10010328748
provision of public goods and with it the welfare of all countries can be enhanced via tax coordination. Based on the standard … Zodrow-Mieszkowski-Wilson tax-competition model this paper analyses the conditions under which tax coordination by a group of … countries is self-enforcing. It is shown that there always exists a rather small stable tax coalition. For some subset of the …
Persistent link: https://www.econbiz.de/10010369289
coordination failure Whereas the harmful effects of tariff competition have been thoroughly explored in the trade policy literature …
Persistent link: https://www.econbiz.de/10010293495
An agreement about a lower bound for admissible tax rates can reduce the equilibrium tax rate (and thus welfare) in tax competition among fully symmetric countries. This is shown in an infinitely repeated game where the stage game describes the standard tax competition model with source-based...
Persistent link: https://www.econbiz.de/10010494464
also used to clarify the limits of welfare enhancing partial tax coordination of a subgroup of regions. In the used …
Persistent link: https://www.econbiz.de/10010296579
The paper considers governments' public procurement decision as a way of influencing industry structure. In a federation in which capital is mobile and capital taxation is harmonized, a home bias in public procurement can potentially be explained as an effort to increase the capital intensity of...
Persistent link: https://www.econbiz.de/10010297639
We extent a solvable version of the core-periphery agglomeration model to four countries located in two regions. The paper shows that there might still be a race to the bottom in capital income tax rates despite agglomeration rents earned by the mobile factor. We find that intra-regional tax...
Persistent link: https://www.econbiz.de/10010264222