Welfare, Revenue and Indirect Tax Harmonization under the Origin Principle
This paper discusses whether some propositions concerning the effects of indirect tax harmonization that have been derived when taxes are levied on a destination basis and revenue is returned to the individuals as a lump-sum transfer can, when accurately reformulated, be extended to a framework where commodities are taxed according to the origin principle and the governments use their revenue to finance the purchase of goods and services. Using a two-country model, it is argued that a non-uniform proportional convergence of domestic taxes towards a properly designed «average » tax structure can be characterized as potentially Pareto-improving. However, these reforms will not, in general, lead to a strict Pareto-improvement where every country is better off without any need for international transfers.
Volume (Year): 168 (2004)
Issue (Month): 1 (marzo)
|Contact details of provider:|| Postal: Avda. Cardenal Herrera Oria, 378, 28035 Madrid|
Web page: http://www.ief.es
More information through EDIRC
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.:
- Dixit, A. K. & Munk, K. J., 1977. "Welfare effects of tax and price changes : A correction," Journal of Public Economics, Elsevier, vol. 8(1), pages 103-107, August.
- Lockwood, Ben, 1997. "Can international commodity tax harmonisation be Pareto-improving when governments supply public goods?," Journal of International Economics, Elsevier, vol. 43(3-4), pages 387-408, November.
- Keen, Michael & Lahiri, Sajal & Raimondos-Moller, Pascalis, 2002.
"Tax principles and tax harmonization under imperfect competition: A cautionary example,"
European Economic Review,
Elsevier, vol. 46(8), pages 1559-1568, September.
- Michael Keen & Sajal Lahiri & Pascalis Raimondos-MÃ¸ller, 2001. "Tax Principles and Tax Harmonization under Imperfect Competition: A Cautionary Example," CESifo Working Paper Series 518, CESifo Group Munich.
- Keen, Michael & Lahiri, Sajal, 1993. "Domestic tax reform and international oligopoly," Journal of Public Economics, Elsevier, vol. 51(1), pages 55-74, May.
- Keen, Michael, 1989. "Pareto-improving indirect tax harmonisation," European Economic Review, Elsevier, vol. 33(1), pages 1-12, January.
- Lucas, Vander, 2001. "Tax harmonisation and the origin principle," Economics Letters, Elsevier, vol. 71(1), pages 111-115, April.
- LUCAS, Vander, "undated". "Tax harmonisation and the origin principle," CORE Discussion Papers RP 1503, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Lahiri, Sajal & Raimondos-Moller, Pascalis, 1998. "Public good provision and the welfare effects of indirect tax harmonisation," Journal of Public Economics, Elsevier, vol. 67(2), pages 253-267, February.
- Sajal Lahiri & Pascalis Raimondos, "undated". "Public Good Provision and the Welfare Effects of Indirect Tax Harmonisation," EPRU Working Paper Series 95-13, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
- Keen, Michael, 1987. "Welfare effects of commodity tax harmonisation," Journal of Public Economics, Elsevier, vol. 33(1), pages 107-114, June.
- Lopez-Garcia, Miguel-Angel, 1998. "On welfare and revenue effects of indirect tax harmonization," Economics Letters, Elsevier, vol. 60(2), pages 185-193, August.
- Kanbur, Ravi & Keen, Michael, 1993. "Jeux Sans Frontieres: Tax Competition and Tax Coordination When Countries Differ in Size," American Economic Review, American Economic Association, vol. 83(4), pages 877-892, September.
- Ravi Kanbur & Michael Keen, 1991. "Jeux Sans Frontieres: Tax Competition and Tax Coordination when Countries Differ in Size," Working Papers 819, Queen's University, Department of Economics.
- Delipalla, Sophia, 1997. "Commodity tax harmonisation and public goods," Journal of Public Economics, Elsevier, vol. 63(3), pages 447-466, February.
- Turunen-Red, Arja H & Woodland, Alan D, 1990. "Multilateral Reform of Domestic Taxes," Oxford Economic Papers, Oxford University Press, vol. 42(1), pages 160-186, January.
- Knud Jørgen Munk, 1980. "Optimal Taxation with some Non-Taxable Commodities," Review of Economic Studies, Oxford University Press, vol. 47(4), pages 755-765.
- Munk, Knud Jorgen, 1978. " Optimal Taxation and Pure Profit," Scandinavian Journal of Economics, Wiley Blackwell, vol. 80(1), pages 1-19.
- Miguel-Angel Lopez-Garcia, 1996. "The origin principle and the welfare gains from indirect tax harmonization," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 3(1), pages 83-93, January. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:hpe:journl:y:2004:v:168:i:1:p:9-25. 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: (Ana Belén Miquel Burgos)
If references are entirely missing, you can add them using this form.