Are small countries leaders of the European tax competition ?

This file is part of IDEAS, which uses RePEc data

Are small countries leaders of the European tax competition ?

Author Info

Nicolas Chatelais () (Centre d'Economie de la Sorbonne et Institut CDC pour la recherche)
Mathilde Peyrat () (ESSEC Business School et Centre d'Economie de la Sorbonne)

Abstract

The aim of this paper is to develop a better understanding of the literature dealing with strategic fiscal behaviours of small EU countries using estimations of tax reaction functions of competing national governments. Deriving a simple model of tax competition in a Nash and Stackelberg game, we use panel data and tools from spatial econometrics to examine the role of small countries in tax competition within the enlarged European Union. We find that interactions are stronger among smaller EU countries than between larges ones and rates set in small countries influence those in big countries. Finally, small countries located in the centre of the EU have more influence on tax policies choices of big countries than small countries located in the periphery of EU.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. 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.

Publisher Info
Paper provided by Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne in its series Documents de travail du Centre d'Economie de la Sorbonne with number bla08058.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 28 pages
Date of creation: Oct 2008
Date of revision:
Handle: RePEc:mse:cesdoc:bla08058

Contact details of provider:
Web page: http://ces.univ-paris1.fr/
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Jacqueline Pradel).

Find related papers by JEL classification:
E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
F22 - International Economics - - International Factor Movements and International Business - - - International Migration
F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

This paper has been announced in the following NEP Reports:

NEP-ALL-2008-11-25 (All new papers)
NEP-PBE-2008-11-25 (Public Economics)

Statistics

Access and download statistics

Did you know? No RePEc service, like IDEAS, charges for the use or the display of bibliographic data.

This page was last updated on 2009-11-23.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.