Enhanced Coorporation in an asymmetric model of Tax Competition
This paper analyzes enhanced cooperation agreements in corporate taxation in a three country tax competition model where countries differ in size. We characterize equilibrium tax rates and the optimal tax responses due to the formation of an enhanced cooperation agreement. Conditions for strategic complementarity or strategic substitutability of tax rates are crucial for the welfare effects of enhanced cooperation. Simulations show that enhanced cooperation is unlikely to be feasible for small countries. When enhanced cooperation is feasible, it may hamper global harmonization. Only when countries are of similar size is global harmonization a feasible outcome.
|Date of creation:||2010|
|Date of revision:|
|Contact details of provider:|| Postal: Park End Street, Oxford OX1 1HP UK|
Phone: +44 (0)1865 288800
Fax: +44 (0)1865 288805
Web page: http://www.sbs.ox.ac.uk/ideas-impact/tax/
More information through EDIRC
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.:
- Bordignon, Massimo & Brusco, Sandro, 2006.
"On enhanced cooperation,"
Journal of Public Economics,
Elsevier, vol. 90(10-11), pages 2063-2090, November.
- Konrad, Kai A. & Schjelderup, Guttorm, 1999.
"Fortress Building in Global Tax Competition,"
Journal of Urban Economics,
Elsevier, vol. 46(1), pages 156-167, July.
- Peter Birch Sørensen, 2000. "The case for international tax co-ordination reconsidered," Economic Policy, CEPR;CES;MSH, vol. 15(31), pages 429-472, October.
- Bayindir-Upmann, Thorsten & Ziad, Abderrahmanne, 2005.
"Existence of equilibria in a basic tax-competition model,"
Regional Science and Urban Economics,
Elsevier, vol. 35(1), pages 1-22, January.
- Abderrahmane Ziad & T. Bayindir-Upmann, 2005. "Existence of Equilibria in a Basic Tax-competition Model," Post-Print halshs-00068854, HAL.
- Paola Manzini & Marco Mariotti, 1998.
"A Tragedy Of The Clubs: Excess Entry in Exclusive Coalitions,"
Game Theory and Information
- Manzini, Paola & Mariotti, Marco, 2002. " A "Tragedy of the Clubs": Excess Entry in Exclusive Coalitions," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 4(1), pages 115-36.
- Ben Lockwood, 2004. "Competition in Unit vs. Ad Valorem Taxes," International Tax and Public Finance, Springer, vol. 11(6), pages 763-772, November.
- Alberto Alesina & Ignazio Angeloni & Federico Etro, 2005.
American Economic Review,
American Economic Association, vol. 95(3), pages 602-615, June.
- Alberto Alesina & Ignazio Angeloni & Federico Etro, 2003. "International Unions," Harvard Institute of Economic Research Working Papers 2001, Harvard - Institute of Economic Research.
- Alesina, Alberto F & Angeloni, Ignazio & Etro, Federico, 2003. "International Unions," CEPR Discussion Papers 3913, C.E.P.R. Discussion Papers.
- Etro, Federico & Ageloni, Ignazio & Alesina, Alberto, 2005. "International Unions," Scholarly Articles 4553008, Harvard University Department of Economics.
- Jens Brøchner & Jesper Jensen & Patrik Svensson & Peter Birch Sørensen, 2006. "The Dilemmas of Tax Coordination in the Enlarged European Union," CESifo Working Paper Series 1859, CESifo Group Munich.
- Jens Brøchner & Jesper Jensen & Patrik Svensson & Peter Birch Sørensen, 2006. "The Dilemmas of Tax Coordination in the Enlarged European Union," Working Papers 2006-11, University of Kentucky, Institute for Federalism and Intergovernmental Relations.
- Leon Bettendorf & Albert van der Horst & Ruud de Mooij & Hendrik Vrijburg, 2009.
"Corporate tax consolidation and enhanced cooperation in the European Union,"
CPB Discussion Paper
132, CPB Netherlands Bureau for Economic Policy Analysis.
- Leon Bettendorf & Albert Van Der Horst & Ruud A. De Mooij & Hendrik Vrijburg, 2010. "Corporate Tax Consolidation and Enhanced Cooperation in the European Union," Fiscal Studies, Institute for Fiscal Studies, vol. 31(4), pages 453-479, December.
- Leon Bettendorf & Albert van der Horst & Ruud A. de Mooij & Hendrik Vrijburg, 2010. "Corporate tax consolidation and enhanced coorporation in the European Union," Working Papers 1001, Oxford University Centre for Business Taxation.
- Beaudry, Paul & Cahuc, Pierre & Kempf, Hubert, 2000.
" Is It Harmful to Allow Partial Cooperation?,"
Scandinavian Journal of Economics,
Wiley Blackwell, vol. 102(1), pages 1-21, March.
- Bucovetsky, S., 1991. "Asymmetric tax competition," Journal of Urban Economics, Elsevier, vol. 30(2), pages 167-181, September.
- Burbidge, John B. & James A. DePater & Gordon M. Meyers & Abhijit Sengupta, 1997.
"A Coalition-Formation Approach to Equilibrium Federations and Trading Blocs,"
American Economic Review,
American Economic Association, vol. 87(5), pages 940-56, December.
- John B. Burbidge & James A. DePater & Gordon M. Myers & Abhijit Sengupta, 1996. "A Coalition-formation Approach to Equilibrium Federations and Trading Block s," Department of Economics Working Papers 1996-05, McMaster University.
- Peter Sørensen, 2004. "Company Tax Reform in the European Union," International Tax and Public Finance, Springer, vol. 11(1), pages 91-115, January.
- Riedel, Nadine & Runkel, Marco, 2007. "Company tax reform with a water's edge," Journal of Public Economics, Elsevier, vol. 91(7-8), pages 1533-1554, August.
When requesting a correction, please mention this item's handle: RePEc:btx:wpaper:1002. 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: (Dongxian Guo)
If references are entirely missing, you can add them using this form.