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The tax competition game revisited: When leadership may be optimal

Author

Listed:
  • Emmanuelle Taugourdeau

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Jean-Pierre Vidal

    (European Council - European Council)

Abstract

In this paper, we investigate the impact of leadership in a tax competition game. We show that leadership by a group of countries is pareto improving for each country (leaders and followers) compared to a Nash equilibrium outcome. In addition, a coalition of leaders is also pareto improving and this coalition is stable.

Suggested Citation

  • Emmanuelle Taugourdeau & Jean-Pierre Vidal, 2014. "The tax competition game revisited: When leadership may be optimal," Post-Print hal-01044913, HAL.
    • Handle: RePEc:hal:journl:hal-01044913
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    More about this item

    Keywords

    Tax competition; Leadership; Strategic interactions;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations

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