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Economic integration and redistribuitive taxation

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  • Haufler, Andreas
  • Klemm, Alexander
  • Schejederup, Guttorm

Abstract

We set up a simple political economy model where economic integration raises the profitability of multinational firms. In this setting redistributive taxation may rise following economic integration, if the effects of the widened income gap dominate the higher excess burden of the tax.

Suggested Citation

  • Haufler, Andreas & Klemm, Alexander & Schejederup, Guttorm, 2006. "Economic integration and redistribuitive taxation," Discussion Papers in Economics 912, University of Munich, Department of Economics.
    • Handle: RePEc:lmu:muenec:912
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    References listed on IDEAS

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    9. 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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    More about this item

    Keywords

    redistributive taxation; profit shifting;

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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