Partial Harmonization of Corporate Taxes in an Asymmetric Repeated Game Setting
This paper investigates the conditions under which partial harmonization for capital taxation is sustained in a repeated interactions model of tax competition when there are three heterogenous countries with respect to their capital endowments. We show that regardless of the structure of the coalition (i.e., any group of countries), whether partial tax harmonization is sustainable or not crucially depends on the capital endowment of the median country relative to those of the large and small countries. The most noteworthy finding is that the closer the capital endowment of the median country to the average capital endowment of the large and small countries, the less likely is the tax harmonization including the median country to prevail and the more likely is the partial tax harmonization excluding the median country to prevail.
|Date of creation:||Nov 2010|
|Date of revision:|
|Contact details of provider:|| Postal: Kita 9, Nishi 7, Kita-ku, Sapporo, 060-0809|
Phone: +81 (0)11-706-3163
Fax: +81 (0)11-706-4947
Web page: http://www.econ.hokudai.ac.jp/en08/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:hok:dpaper:229. 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: (Hokkaido University Library)
If references are entirely missing, you can add them using this form.