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Capital taxation and production efficiency in an open economy

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  • Eggert, Wolfgang
  • Haufler, Andreas

Abstract

We attempt to clarify the role of the production efficiency theorem in international capital taxation. It is shown that a direct open-economy analogue to the production efficiency theorem arises not in the small country case, but in the more general setting of tax competition between a finite number of identical jurisdictions.
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  • Eggert, Wolfgang & Haufler, Andreas, 1999. "Capital taxation and production efficiency in an open economy," Economics Letters, Elsevier, vol. 62(1), pages 85-90, January.
    • Handle: RePEc:eee:ecolet:v:62:y:1999:i:1:p:85-90
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    Cited by:

    1. David R. Agrawal, 2023. "Limits to Competition: Strategies for Promoting Jurisdictional Cooperation," NBER Chapters, in: Policy Responses to Tax Competition, National Bureau of Economic Research, Inc.
    2. Peralta, Susana & van Ypersele, Tanguy, 2005. "Factor endowments and welfare levels in an asymmetric tax competition game," Journal of Urban Economics, Elsevier, vol. 57(2), pages 258-274, March.
    3. Geys Benny & Revelli Federico, 2009. "Decentralization, competition and the local tax mix: Evidence from Flanders," Department of Economics and Statistics Cognetti de Martiis. Working Papers 200902, University of Turin.
    4. Erkki Koskela & Ronnie Schöb, 2002. "Optimal Factor Income Taxation in the Presence of Unemployment," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 4(3), pages 387-404, July.
    5. Till Gross, 2021. "Dynamic Optimal Fiscal Policy in a Transfer Union," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 42, pages 194-238, October.
    6. Becker, Johannes & Wilson, John D., 2023. "Tax competition with two tax instruments — and tax base erosion," Journal of Public Economics, Elsevier, vol. 225(C).
    7. Gross, Till & Klein, Paul & Makris, Miltiadis, 2020. "Residence- and source-based capital taxation in open economies with infinitely-lived consumers," Journal of International Economics, Elsevier, vol. 127(C).
    8. Eggert, Wolfgang, 2001. "Capital tax competition with socially wasteful government consumption," European Journal of Political Economy, Elsevier, vol. 17(3), pages 517-529, September.
    9. Michael Keen & David E. Wildasin, 2000. "Pareto Efficiency in International Taxation," CESifo Working Paper Series 371, CESifo.
    10. Dickescheid, Thomas, 2002. "Steuerwettbewerb und Direktinvestitionen," Beiträge zur Finanzwissenschaft, Mohr Siebeck, Tübingen, edition 1, volume 16, number urn:isbn:9783161477348, December.
    11. Wolfgang Eggert & Martin Kolmar, 2004. "The Taxation of Financial Capital under Asymmetric Information and the Tax‐competition Paradox," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(1), pages 83-106, March.
    12. Kotsogiannis, Christos & Makris, Miltiadis, 2002. "On production efficiency in federal systems," Economics Letters, Elsevier, vol. 76(2), pages 281-287, July.
    13. Homburg, Stefan, 2000. "Perspektiven der internationalen Unternehmensbesteuerung," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 9-61.
    14. Maiterth, Ralf & Sureth, Caren, 2006. "Unternehmensfinanzierung, Unternehmensrechtsform und Besteuerung," arqus Discussion Papers in Quantitative Tax Research 15, arqus - Arbeitskreis Quantitative Steuerlehre.
    15. Sven Wehke, 2006. "Tax Competition and Partial Coordination," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 62(3), pages 416-436, September.
    16. Johannes Becker & John D. Wilson, 2021. "Tax Competition with Two Tax Instruments - and Tax Evasion," CESifo Working Paper Series 9318, CESifo.

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