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The empirical study of the tax competition in the European Union
[Empirická analýza daňové soutěže v Evropské unii]

Author

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  • Danuše Nerudová

    (Ústav účetnictví a daní, Mendelova zemědělská a lesnická univerzita v Brně, Zemědělská 1, 613 00 Brno, Česká republika)

  • Svatopluk Kapounek

    (Ústav financí, Mendelova zemědělská a lesnická univerzita v Brně, Zemědělská 1, 613 00 Brno, Česká republika)

Abstract

The increase in the capital mobility forces the Member States to decrease tax burden on capital. Lower revenues from capital taxation have to be compensated by the increase in tax burden on labor. The aim of the article is verify the hypothesis that increasing capital mobility leads to the decrease in the tax burden on capital and also that decrease in the tax burden on capital leads to the increase in the tax burden on labor. The hypothesis will be tested for EU Member States in the time period 1991-2005 by using cointegration analysis.

Suggested Citation

  • Danuše Nerudová & Svatopluk Kapounek, 2007. "The empirical study of the tax competition in the European Union [Empirická analýza daňové soutěže v Evropské unii]," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 55(3), pages 75-84.
    • Handle: RePEc:mup:actaun:actaun_2007055030075
    DOI: 10.11118/actaun200755030075
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    References listed on IDEAS

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    1. Devereux, Michael P. & Lockwood, Ben & Redoano, Michela, 2008. "Do countries compete over corporate tax rates?," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1210-1235, June.
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    3. Bretschger, Lucas & Hettich, Frank, 2002. "Globalisation, capital mobility and tax competition: theory and evidence for OECD countries," European Journal of Political Economy, Elsevier, vol. 18(4), pages 695-716, November.
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    5. Bucovetsky, Sam & Wilson, John Douglas, 1991. "Tax competition with two tax instruments," Regional Science and Urban Economics, Elsevier, vol. 21(3), pages 333-350, November.
    6. Rosanne Altshuler & Timothy J. Goodspeed, 2015. "Follow the Leader? Evidence on European and US Tax Competition," Public Finance Review, , vol. 43(4), pages 485-504, July.
    7. Puhani, Patrick A., 1999. "Labour Mobility - An Adjustment Mechanism in Euroland?," IZA Discussion Papers 34, Institute of Labor Economics (IZA).
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    Cited by:

    1. Ján Huňady & Marta Orviská, 2015. "Tax Competition and its Consequences for Tax Revenue Structure in Developed Countries: Empirical Evidence Using Panel Cointegration Approach," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 63(6), pages 1913-1921.

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