Advanced Search
MyIDEAS: Login to save this paper or follow this series

Optimal income taxation with tax competition

Contents:

Author Info

  • Vilen Lipatov

    ()
    (Goethe University Frankfurt)

  • Alfons Weichenrieder

    (Goethe University Frankfurt, Vienna University of Economics and Business, and CESifo)

Abstract

We introduce tax competition for mobile labor into an optimal- taxation model with two skill levels and analyze a symmetric subgame- perfect Nash equilibrium of the game between two governments and two taxpayer populations. Tax competition reduces the distortion from the informational asymmetry and increases employment of the less productive individuals. When countries are heterogeneous, this e¤ect is more pronounced in the smaller country.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.sbs.ox.ac.uk/sites/default/files/Business_Taxation/Docs/WP1207.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Oxford University Centre for Business Taxation in its series Working Papers with number 1207.

as in new window
Length:
Date of creation: 2012
Date of revision:
Handle: RePEc:btx:wpaper:1207

Contact details of provider:
Postal: Park End Street, Oxford OX1 1HP UK
Phone: +44 (0)1865 288800
Fax: +44 (0)1865 288805
Web page: http://www.sbs.ox.ac.uk/ideas-impact/tax/
More information through EDIRC

Related research

Keywords: optimal income tax; migration; unemployment; tax competition; Leviathan government;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Petter Osmundsen & Guttorm Schjelderup & Kåre Petter Hagen, 2000. "Personal income taxation under mobility, exogenous and endogenous welfare weights, and asymmetric information," Journal of Population Economics, Springer, vol. 13(4), pages 623-637.
  2. Bierbrauer, Felix & Brett, Craig & Weymark, John A., 2013. "Strategic nonlinear income tax competition with perfect labor mobility," Games and Economic Behavior, Elsevier, vol. 82(C), pages 292-311.
  3. Osmundsen, P. & Hagen, K. P. & Schjelderup, G., 1998. "Internationally mobile firms and tax policy1," Journal of International Economics, Elsevier, vol. 45(1), pages 97-113, June.
  4. Hans-Werner Sinn, 2002. "The New Systems Competition," NBER Working Papers 8747, National Bureau of Economic Research, Inc.
  5. Wolfram F. Richter, 2002. "Delaying Integration of Immigrant Labor for the Purpose of Taxation," CESifo Working Paper Series 802, CESifo Group Munich.
  6. Gwenael Piaser, 2003. "Labor Mobility and Income Tax Competition," Public Economics 0302002, EconWPA.
  7. Alain Trannoy, Laurent Simula and, 2009. "Optimal Income Tax under the Threat of Migration by Top-Income Earners," Working Paper Series, Center for Fiscal Studies 2009:8, Uppsala University, Department of Economics.
  8. Jeremy Edwards & Michael Keen, 1994. "Tax competition and Leviathon," IFS Working Papers W94/07, Institute for Fiscal Studies.
  9. Zodrow, George R. & Mieszkowski, Peter, 1986. "Pigou, Tiebout, property taxation, and the underprovision of local public goods," Journal of Urban Economics, Elsevier, vol. 19(3), pages 356-370, May.
  10. Alain Trannoy, Laurent Simula and, 2009. "Shall We Keep Highly Skilled at Home? The Optimal Income Tax Perspective," Working Paper Series, Center for Fiscal Studies 2009:9, Uppsala University, Department of Economics.
  11. Mirrlees, James A, 1971. "An Exploration in the Theory of Optimum Income Taxation," Review of Economic Studies, Wiley Blackwell, vol. 38(114), pages 175-208, April.
  12. Joseph E. Stiglitz, 1981. "Self-Selection and Pareto Efficient Taxation," NBER Working Papers 0632, National Bureau of Economic Research, Inc.
  13. Massimo Morelli & Huanxing Yang & Lixin Ye, 2010. "Competitive Nonlinear Taxation and Constitutional Choice," Economics Working Papers ECO2010/14, European University Institute.
  14. Huber, Bernd, 1999. "Tax competition and tax coordination in an optimum income tax model," Munich Reprints in Economics 19402, University of Munich, Department of Economics.
  15. Hagen, K.P. & Osmundsen, P. & Schjelderup, G., 1995. "Internationally Mobile Firms and Tax Policy," Papers 8/95, Norwegian School of Economics and Business Administration-.
  16. Mirrlees, J. A., 1982. "Migration and optimal income taxes," Journal of Public Economics, Elsevier, vol. 18(3), pages 319-341, August.
  17. Huber, Bernd, 1999. "Tax competition and tax coordination in an optimum income tax model," Journal of Public Economics, Elsevier, vol. 71(3), pages 441-458, March.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Michael Funke & Yu-Fu Chen & Aaron Mehrota, 2011. "Global warming and extreme events: Rethinking the timing and intensity of environment policy," Quantitative Macroeconomics Working Papers 21105, Hamburg University, Department of Economics.
  2. Lehmann, Etienne & Simula, Laurent & Trannoy, Alain, 2013. "Tax Me If You Can! Optimal Nonlinear Income Tax between Competing Governments," IZA Discussion Papers 7646, Institute for the Study of Labor (IZA).
  3. Felix Bierbrauer & Craig Brett & John A. Weymark, 2011. "Strategic Nonlinear Income Tax Competition with Perfect Labor Mobility," CESifo Working Paper Series 3329, CESifo Group Munich.
  4. Sebastian G. Kessing & Bernhard Koldert, 2012. "Cross-Border Shopping and the Atkinson-Stiglitz Theorem," Volkswirtschaftliche Diskussionsbeiträge 158-12, Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht.
  5. Laurent Simula, 2013. "Tax Competition and Migration," 2013 Meeting Papers 1126, Society for Economic Dynamics.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:btx:wpaper:1207. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Li Liu).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.