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Capital Mobility And Capital Tax Competition

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  • Zodrow, George R.

Abstract

This paper surveys the literatures on two questions that are essential to the discussion of mobility and taxation that is the focus of this special issue of the National Tax Journal. First, it examines the extent to which capital is mobile internationally, focusing on empirical evidence on the tax sensitivity of foreign investment, the incidence of the corporate income tax, and savings-investment correlations. Second, it considers the extent to which the mobility of capital has resulted in interjurisdictional capital tax competition, drawing on the theoretical tax competition literature, empirical evidence on corporate income tax rates, the strategic tax competition literature, and the relatively new literature examining interjurisdictional competition in the form of allowing tax avoidance.

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Bibliographic Info

Article provided by National Tax Association in its journal National Tax Journal.

Volume (Year): 63 (2010)
Issue (Month): 4 (December)
Pages: 865-901

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Handle: RePEc:ntj:journl:v:63:y:2010:i:4:p:865-901

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Cited by:
  1. Michael Devereux & Simon Loretz, 2012. "What do we know about corporate tax competition?," Working Papers, Oxford University Centre for Business Taxation 1229, Oxford University Centre for Business Taxation.
  2. Bob Chirinko & Daniel J. Wilson, 2007. "Tax competition among U.S. states: racing to the bottom or riding on a seesaw?," Working Paper Series, Federal Reserve Bank of San Francisco 2008-03, Federal Reserve Bank of San Francisco.
  3. Denvil Duncan & Ed Gerrish, 2014. "Personal income tax mimicry: evidence from international panel data," International Tax and Public Finance, Springer, Springer, vol. 21(1), pages 119-152, February.
  4. Michele Moretto & Paolo Panteghini & Sergio Vergalli, 2013. "Tax Competition, Investment Irreversibility and the Provision of Public Goods," CESifo Working Paper Series, CESifo Group Munich 4256, CESifo Group Munich.
  5. Zodrow, George R. & Diamond, John W., 2013. "Dynamic Overlapping Generations Computable General Equilibrium Models and the Analysis of Tax Policy: The Diamond–Zodrow Model," Handbook of Computable General Equilibrium Modeling, Elsevier, Elsevier.
  6. Akira Yakita, 2014. "Effects of capital taxation on economies with different demographic changes: short term versus long term," Journal of Population Economics, Springer, Springer, vol. 27(1), pages 257-273, January.
  7. Shafik Hebous, 2011. "Money at the Docks of Tax Havens: A Guide," CESifo Working Paper Series, CESifo Group Munich 3587, CESifo Group Munich.

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