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Tax Competition and Tax Harmonization With Evasion

Author

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  • Gandelman Néstor

    (Universidad ORT)

  • Hernández-Murillo Rubén

    (Federal Reserve Bank of St. Louis)

Abstract

We examine a two-jurisdiction tax competition environment where local governments can only imperfectly monitor where agents pay taxes and risk-averse individuals may choose to cross borders to pay lower taxes in a neighboring location.

Suggested Citation

  • Gandelman Néstor & Hernández-Murillo Rubén, 2004. "Tax Competition and Tax Harmonization With Evasion," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 4(1), pages 1-24, May.
    • Handle: RePEc:bpj:bejeap:v:topics.4:y:2004:i:1:n:13
    DOI: 10.2202/1538-0653.1219
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    References listed on IDEAS

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    8. Kanbur, Ravi & Keen, Michael, 1993. "Jeux Sans Frontieres: Tax Competition and Tax Coordination When Countries Differ in Size," American Economic Review, American Economic Association, vol. 83(4), pages 877-892, September.
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    Cited by:

    1. Néstor Gandelman, 2005. "Community Tax Evasion Models: A Stochastic Dominance Test," Journal of Applied Economics, Taylor & Francis Journals, vol. 8(2), pages 279-297, November.

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    More about this item

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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