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Fortress Building in Global Tax Competition

Author

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  • Konrad, K.A.
  • Schjelderup, G.

Abstract

This paper studies whether a group of countries can gain from harmonizing their capital income taxes if the rest of the world does not follow suit. It is shown that cooperation among the subgroup of countries is beneficial if tax rates in the initial fully non-cooperative Nash equilibrium are strategic complements. In this case tax harmonization among a subset of countries is Pareto improving for all countries.

Suggested Citation

  • Konrad, K.A. & Schjelderup, G., 1998. "Fortress Building in Global Tax Competition," Papers 17/98, Norwegian School of Economics and Business Administration-.
    • Handle: RePEc:fth:norgee:17/98
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    TAXATION ; INTERNATIONAL ECONOMY ; INTERNATIONAL COOPERATION;
    All these keywords.

    JEL classification:

    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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