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Tacit collusion and international commodity taxation

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  • Haufler, Andreas
  • Schjelderup, Guttorm

Abstract

The paper employs a model of dynamic price competition to study how international commodity taxation affects the stability of collusive agreements when producers in an international duopoly agree not to export into each other’s home market. We consider both the choice of international tax principle and the harmonization of tax rates and differentiate between a setting where production costs differ between countries, and a setting where exogenous tax rate differentials are the only asymmetry. The conclusions derived from this model differ strongly from those obtained under the assumption of competitive product markets.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Public Economics.

Volume (Year): 88 (2004)
Issue (Month): 3-4 (March)
Pages: 577-600

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Handle: RePEc:eee:pubeco:v:88:y:2004:i:3-4:p:577-600

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Web page: http://www.elsevier.com/locate/inca/505578

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References

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Citations

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Cited by:
  1. Andreas HaufLer & Guttorm Schjelderup & Frank Stähler, 2005. "Barriers to Trade and Imperfect Competition: The Choice of Commodity Tax Base," International Tax and Public Finance, Springer, vol. 12(3), pages 281-300, May.
  2. repec:hal:wpaper:halshs-00590515 is not listed on IDEAS
  3. Dirk Schindler & Guttorm Schjelderup, 2006. "Company Tax Reform in Europe and its Effect on Collusive Behavior," CoFE Discussion Paper 06-01, Center of Finance and Econometrics, University of Konstanz.
  4. Dirk Schindler & Guttorm Schjelderup, 2009. "Harmonization of Corporate Tax Systems and Its Effect on Collusive Behavior," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 11(4), pages 599-621, 08.
  5. Andreas Haufler & Michael Pflüger, 2003. "Market Structure and the Taxation of International Trade," CESifo Working Paper Series 1080, CESifo Group Munich.
  6. Kessing, Sebastian G. & Konrad, Kai A. & Kotsogiannis, Christos, 2006. "Federal tax autonomy and the limits of cooperation," Journal of Urban Economics, Elsevier, vol. 59(2), pages 317-329, March.
  7. repec:hal:wpaper:halshs-00590719 is not listed on IDEAS

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