IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Fighting Multiple Tax Havens

  • May Elsayyad
  • Kai A. Konrad

This paper develops a competition theory framework that evaluates an important aspect of the OECD’s Harmful Tax Practices Initiative against tax havens. We show that the sequential nature of the process is harmful and more costly than a “big bang” multilateral agreement. The sequentiality may even prevent the process from being completed successfully. Closing down a subset of tax havens reduces competition among the havens that remain active. This makes their “tax haven business” more profitable and shifts a larger share of rents to these remaining tax havens, making them more reluctant to give up their “tax haven business”. Moreover, the outcome of this process, reducing the number of tax havens, but not eliminating them altogether, may reduce welfare in the OECD.

If you experience problems downloading a file, check if you have the proper application to view it first. 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.

File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2010/wp-cesifo-2010-09/cesifo1_wp3195.pdf
Download Restriction: no

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3195.

as
in new window

Length:
Date of creation: 2010
Date of revision:
Handle: RePEc:ces:ceswps:_3195
Contact details of provider: Postal:
Poschingerstrasse 5, 81679 Munich

Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Web page: http://www.cesifo-group.de
Email:


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.:

as in new window
  1. Bagwell, Kyle & Staiger, Robert W., 2010. "Backward stealing and forward manipulation in the WTO," Journal of International Economics, Elsevier, vol. 82(1), pages 49-62, September.
  2. Konstantinos Angelopoulos & Jim Malley, 2010. "Fear of Model Misspecification and the Robustness Premium," CESifo Working Paper Series 3186, CESifo Group Munich.
  3. Wang, Xuejun, 2004. "Tax evasion, tax competition and gains from nondiscrimination with equilibrium mixed strategies," Economics Letters, Elsevier, vol. 83(3), pages 377-381, June.
  4. Hanel, Barbara & Riphahn, Regina T., 2011. "The Employment of Mothers: Recent Developments and their Determinants in East and West Germany," IZA Discussion Papers 5752, Institute for the Study of Labor (IZA).
  5. Krishna, Kala & Thursby, Marie, 1991. "Optimal policies with strategic distortions," Journal of International Economics, Elsevier, vol. 31(3-4), pages 291-308, November.
  6. Rubinstein, Ariel, 1982. "Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 50(1), pages 97-109, January.
  7. Jørgen Juel Andersen & Jon H. Fiva & Gisle James Natvik, 2013. "Voting When the Stakes Are High," Working Papers 0017, Centre for Applied Macro- and Petroleum economics (CAMP), BI Norwegian Business School.
  8. Dhammika Dharmapala, 2008. "What problems and opportunities are created by tax havens?," Oxford Review of Economic Policy, Oxford University Press, vol. 24(4), pages 661-679, winter.
  9. Shutao Cao & Enchuan Shao & Pedro Silos, 2010. "Fixed-Term and Permanent Employment Contracts: Theory and Evidence," CESifo Working Paper Series 3150, CESifo Group Munich.
  10. Slemrod, Joel & Wilson, John D., 2009. "Tax competition with parasitic tax havens," Journal of Public Economics, Elsevier, vol. 93(11-12), pages 1261-1270, December.
  11. Chen, Yu-Fu & Funke, Michael, 2010. "Global Warming And Extreme Events: Rethinking The Timing And Intensity Of Environmental Policy," SIRE Discussion Papers 2010-48, Scottish Institute for Research in Economics (SIRE).
  12. Francesco Daveri & Paolo Manasse & Danila Serra, 2010. "The Twin Effects of Globalization - Evidence from a Sample of Indian Manufacturing Firms," CESifo Working Paper Series 3174, CESifo Group Munich.
  13. Franziska Tausch & Jan Potters & Arno Riedl, 2010. "Preferences for Redistribution and Pensions. What can we Learn from Experiments?," CESifo Working Paper Series 3156, CESifo Group Munich.
  14. Kocas, Cenk & Kiyak, Tunga, 2006. "Theory and evidence on pricing by asymmetric oligopolies," International Journal of Industrial Organization, Elsevier, vol. 24(1), pages 83-105, January.
  15. Dalen Dag Morten & Strom Steinar & Locatelli Marilena, 2010. "Longitudinal analysis of generic substitution," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201013, University of Turin.
  16. Christian Fahrholz & Cezary Wójcik, 2010. "The Bail-Out! Positive Political Economics of Greek-type Crises in the EMU," CESifo Working Paper Series 3178, CESifo Group Munich.
  17. Eichner, Thomas & Runkel, Marco, 2014. "Subsidizing renewable energy under capital mobility," Journal of Public Economics, Elsevier, vol. 117(C), pages 50-59.
  18. Marcus Dittrich & Beate Schirwitz, 2010. "Union Membership and Employment Dynamics: A Note," CESifo Working Paper Series 3173, CESifo Group Munich.
  19. Sam Bucovetsky, 2009. "An index of capital tax competition," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 16(6), pages 727-752, December.
  20. Sabrina Di Addario & Daniela Vuri, 2010. "Entrepreneurship and Market Size. The Case of Young College Graduates in Italy," CEIS Research Paper 171, Tor Vergata University, CEIS, revised 08 Nov 2010.
  21. Kai A. Konrad & Dan Kovenoch, 2009. "Competition for FDI with vintage investment and agglomeration advantages," Working Papers 2009/18, Institut d'Economia de Barcelona (IEB).
  22. Chisik, Richard & Davies, Ronald B., 2004. "Asymmetric FDI and tax-treaty bargaining: theory and evidence," Journal of Public Economics, Elsevier, vol. 88(6), pages 1119-1148, June.
  23. Philip R. Lane & Gian Maria Milesi-Ferretti, 2006. "The External Wealth of Nations Mark II: Revised and Extended Estimates of Foreign Assets and Liabilities,1970–2004," The Institute for International Integration Studies Discussion Paper Series iiisdp126, IIIS.
  24. Shoshana Amyra Grossbard & Alfredo Marvao Pereira, 2010. "Will Women Save more than Men? A Theoretical Model of Savings and Marriage," CESifo Working Paper Series 3146, CESifo Group Munich.
  25. Grossmann, Volker & Steger, Thomas M. & Trimborn, Timo, 2010. "Dynamically Optimal R\& D Subsidization," Hannover Economic Papers (HEP) dp-453, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
  26. Andersson, Frederik & Konrad, Kai A., 2001. "Globalization and human capital formation
    [Globalisierung und Humankapitalinvestitionen]
    ," Discussion Papers, Research Unit: Market Processes and Governance FS IV 01-01, Social Science Research Center Berlin (WZB).
  27. Alexander Haupt & Tim Krieger & Thomas Lange, 2010. "A Note on Brain Gain and Brain Drain: Permanent Migration and Education Policy," Working Papers CIE 27, Paderborn University, CIE Center for International Economics.
  28. Bernard Caillaud & Patrick Rey & Roger Guesnerie & Jean Tirole, 1987. "Government Intervention in Production and Incentives Theory: A Review of Recent Contributions," Working papers 472, Massachusetts Institute of Technology (MIT), Department of Economics.
  29. Nicolas Marceau & Steeve Mongrain & John D. Wilson, 2007. "Why Do Most Countries Set Higher Tax Rates on Capital?," Discussion Papers dp07-09, Department of Economics, Simon Fraser University.
  30. Lommerud, Kjell Erik & Straume, Odd Rune & Sørgard, Lars, 2003. "National versus international mergers in unionised oligopoly," Working Papers in Economics 12/03, University of Bergen, Department of Economics.
  31. Kudrle Robert T, 2008. "The OECD's Harmful Tax Competition Initiative and the Tax Havens: From Bombshell to Damp Squib," Global Economy Journal, De Gruyter, vol. 8(1), pages 1-26, February.
  32. Jarko Fidrmuc, 2010. "Time-Varying Exchange Rate Basket in China from 2005 to 2009," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 52(4), pages 515-529, December.
  33. Narasimhan, Chakravarthi, 1988. "Competitive Promotional Strategies," The Journal of Business, University of Chicago Press, vol. 61(4), pages 427-49, October.
  34. Desai, Mihir A. & Foley, C. Fritz & Hines, James Jr., 2006. "Do tax havens divert economic activity?," Economics Letters, Elsevier, vol. 90(2), pages 219-224, February.
  35. Dixit, Avinash, 1984. "International Trade Policy for Oligopolistic Industries," Economic Journal, Royal Economic Society, vol. 94(376a), pages 1-16, Supplemen.
  36. Klaus Abberger & Wolfgang Nierhaus, 2010. "The Ifo Business Cycle Clock: Circular Correlation with the Real GDP," CESifo Working Paper Series 3179, CESifo Group Munich.
  37. John Whalley & Tanmaya Shekhar, 2010. "The Rapidly Deepening India-China Economic Relationship," CESifo Working Paper Series 3183, CESifo Group Munich.
  38. Wollmershäuser, Timo & Rottmann, Horst, 2010. "A micro data approach to the identification of credit crunches," Weidener Diskussionspapiere 24, University of Applied Sciences Amberg-Weiden (OTH).
  39. Jean-Pierre Ponssard & Catherine Thomas, 2010. "Capacity Investment under Demand Uncertainty. An Empirical Study of the US Cement Industry, 1994-2006," CESifo Working Paper Series 3166, CESifo Group Munich.
  40. Neustadt, Ilja & Zweifel, Peter, 2010. "Is the Welfare State Sustainable? Experimental Evidence on Citizens' Preferences for Redistribution," MPRA Paper 22233, University Library of Munich, Germany.
  41. John Boyd & Gianni De Nicolò & Elena Loukoianova, 2010. "Banking Crises and Crisis Dating: Theory and Evidence," CESifo Working Paper Series 3134, CESifo Group Munich.
  42. Kai Carstensen & Klaus Wohlrabe & Christina Ziegler, 2010. "Predictive Ability of Business Cycle Indicators under Test: A Case Study for the Euro Area Industrial Production," CESifo Working Paper Series 3158, CESifo Group Munich.
  43. James R. Hines, 2010. "Treasure Islands," Journal of Economic Perspectives, American Economic Association, vol. 24(4), pages 103-26, Fall.
  44. Qing Hong & Michael Smart, 2006. "In praise of tax havens: International tax planning and foreign direct investment," Working Papers tecipa-265, University of Toronto, Department of Economics.
  45. Henrik Horn & James Levinsohn, 1997. "Merger Policies and Trade Liberalization," NBER Working Papers 6077, National Bureau of Economic Research, Inc.
  46. Laffont, Jean-Jacques & Tirole, Jean, 1986. "Using Cost Observation to Regulate Firms," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages 614-41, June.
  47. Falk, Armin & Meier, Stephan & Zehnder, Christian, 2011. "Did We Overestimate the Role of Social Preferences? The Case of Self-Selected Student Samples," IZA Discussion Papers 5475, Institute for the Study of Labor (IZA).
  48. Vincenzo Galasso & Paola Profeta, 2011. "When the State Mirrors the Family: The Design of Pension Systems," Working Papers 392, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
  49. Martin Kolmar & Andreas Wagener, 2010. "Inefficient Group Organization as Optimal Adaption to Dominant Environments," CESifo Working Paper Series 3157, CESifo Group Munich.
  50. Michael Binder & Qianying Chen & Xuan Zhang, 2010. "On the Effects of Monetary Policy Shocks on Exchange Rates," CESifo Working Paper Series 3162, CESifo Group Munich.
  51. Carolina Manzano & Xavier Vives, 2010. "Public and Private Learning from Prices, Strategic Substitutability and Complementarity, and Equilibrium Multiplicity," CESifo Working Paper Series 3137, CESifo Group Munich.
  52. Osberghaus, Daniel & Reif, Christiane, 2010. "Total costs and budgetary effects of adaptation to climate change: An assessment for the European Union," ZEW Discussion Papers 10-046, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  53. Stephen W. Salant & Sheldon Switzer & Robert J. Reynolds, 1983. "Losses From Horizontal Merger: The Effects of an Exogenous Change in Industry Structure on Cournot-Nash Equilibrium," The Quarterly Journal of Economics, Oxford University Press, vol. 98(2), pages 185-199.
  54. Marcus Dittrich & Andreas Knabe, 2010. "Wage and Employment Effects of Non-Binding Minimum Wages," CESifo Working Paper Series 3149, CESifo Group Munich.
  55. Horn, Henrik & Persson, Lars, 2001. "Endogenous mergers in concentrated markets," International Journal of Industrial Organization, Elsevier, vol. 19(8), pages 1213-1244, September.
  56. Alexander Haupt & Silke Uebelmesser, 2010. "Integration, Mobility, and Human Capital Formation," CESifo Working Paper Series 3190, CESifo Group Munich.
  57. Kemnitz, Alexander, 2007. "Educational Federalism and the Quality Effects of Tuition Fees," Dresden Discussion Paper Series in Economics 08/07, Technische Universität Dresden, Faculty of Business and Economics, Department of Economics.
  58. Silvia Dominguez-Martinez & Randolph Sloof & Ferdinand von Siemens, 2010. "Monitoring your Friends, not your Foes: Strategic Ignorance and the Delegation of Real Authority," CESifo Working Paper Series 3172, CESifo Group Munich.
  59. ZUBER, Stéphane, 2010. "Justifying social discounting: the rank-discounted utilitarian approach," CORE Discussion Papers 2010036, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  60. Varian, Hal R, 1980. "A Model of Sales," American Economic Review, American Economic Association, vol. 70(4), pages 651-59, September.
  61. Martin Kolmar & Hendrik Rommeswinkel, 2010. "Group Contests with Complementarities in Efforts," CESifo Working Paper Series 3136, CESifo Group Munich.
  62. Johannesen, Niels, 2010. "Imperfect tax competition for profits, asymmetric equilibrium and beneficial tax havens," Journal of International Economics, Elsevier, vol. 81(2), pages 253-264, July.
  63. Pehr-Johan Norbäck & Lars Persson & Jonas Vlachos, 2009. "Cross-border acquisitions and taxes: efficiency and tax revenues," Canadian Journal of Economics, Canadian Economics Association, vol. 42(4), pages 1473-1500, November.
  64. Baye, Michael R. & Kovenock, Dan & de Vries, Casper G., 1992. "It takes two to tango: Equilibria in a model of sales," Games and Economic Behavior, Elsevier, vol. 4(4), pages 493-510, October.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_3195. 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: (Klaus Wohlrabe)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.