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Is there evidence of strategic corporate tax interaction among EU countries?

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  • Ruiz, Fernando
  • Gerard, Marcel

Abstract

In this paper we empirically investigate whether EU countries set their corporate tax interdependently and, at the same time, we examine which space may be relevant in the construction of this association. Our findings indicate the presence of tax interdependency among the EU-15 in statutory and effective corporate taxes based on the tax codes. Moreover, corporate taxes in the EU-15 seem to suffer from common external shocks.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 10094.

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Date of creation: 2008
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Handle: RePEc:pra:mprapa:10094

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Keywords: Tax mimicking; tax competition; spatial panel;

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Citations

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Cited by:
  1. Karen, CRABBE & Hylke, VANDENBUSSCHE, 2008. "Are your firm’s taxes set in Warsaw ? Spatial tax competition in Europe," Discussion Papers (ECON - Département des Sciences Economiques) 2008050, Université catholique de Louvain, Département des Sciences Economiques.
  2. repec:hal:journl:halshs-00332479 is not listed on IDEAS
  3. Michael Devereux & Simon Loretz, 2012. "What do we know about corporate tax competition?," Working Papers 1229, Oxford University Centre for Business Taxation.
  4. David Bartolini & Raffaella Santolini, 2012. "Political yardstick competition among Italian municipalities on spending decisions," The Annals of Regional Science, Springer, vol. 49(1), pages 213-235, August.
  5. Hansson, Åsa & Porter, Susan & Perry Williams, Susan, 2012. "The Effect of Political and Economic Factors on Corporate Tax Rates," Working Paper Series 942, Research Institute of Industrial Economics.
  6. Markus Leibrecht & Claudia Hochgatterer, 2012. "Tax Competition As A Cause Of Falling Corporate Income Tax Rates: A Survey Of Empirical Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 26(4), pages 616-648, 09.

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