Capital mobility, tax competition, and lobbying for redistributive capital taxation
This paper analyzes the impact of international capital mobility on redistributive capital taxation and on lobbying activities by interest groups. It employs a model where different capital endowments lead to a conflict between households concerning their most preferred capital tax rate. Three main results are derived: First, redistributive source based capital taxes or subsidies decline as international tax competition intensifies. Second, lobbying activities of certain interest groups may explain international differences in the capital tax rate. Third, capital mobility may lead to declining lobbying activities of interest groups and thus may be welfare increasing for all households.
|Date of creation:||1996|
|Date of revision:|
|Contact details of provider:|| Postal: Kiellinie 66, D-24105 Kiel|
Phone: +49 431 8814-1
Fax: +49 431 85853
Web page: http://www.ifw-kiel.de
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.:
- Stefan Sinn, 1992. "The taming of Leviathan: Competition among governments," Constitutional Political Economy, Springer, vol. 3(2), pages 177-196, March.
- Jeremy Edwards & Michael Keen, 1994.
"Tax competition and Leviathon,"
IFS Working Papers
W94/07, Institute for Fiscal Studies.
- repec:oup:restud:v:59:y:1992:i:4:p:689-701 is not listed on IDEAS
- Hoyt, William H., 1991. "Property taxation, Nash equilibrium, and market power," Journal of Urban Economics, Elsevier, vol. 30(1), pages 123-131, July.
- Gary S. Becker, 1983. "A Theory of Competition Among Pressure Groups for Political Influence," The Quarterly Journal of Economics, Oxford University Press, vol. 98(3), pages 371-400.
- McLure, Charles E, Jr, 1969. "The Inter-regional Incidence of General Regional Taxes," Public Finance = Finances publiques, , vol. 24(3), pages 457-85.
- Tullock, Gordon, 1971. "The Cost of Transfers," Kyklos, Wiley Blackwell, vol. 24(4), pages 629-43.
- Bucovetsky, Sam & Wilson, John Douglas, 1991. "Tax competition with two tax instruments," Regional Science and Urban Economics, Elsevier, vol. 21(3), pages 333-350, November.
- Dixit, Avinash K, 1986. "Comparative Statics for Oligopoly," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 27(1), pages 107-22, February.
- Zodrow, George R. & Mieszkowski, Peter, 1986. "Pigou, Tiebout, property taxation, and the underprovision of local public goods," Journal of Urban Economics, Elsevier, vol. 19(3), pages 356-370, May.
- Rauscher, Michael, 1996. "Interjurisdictional competition and the efficiency of the public sector: The triumph of the market over the state?," Kiel Working Papers 732, Kiel Institute for the World Economy.
- Razin, Assaf & Sadka, Efraim, 1991. "Efficient investment incentives in the presence of capital flight," Journal of International Economics, Elsevier, vol. 31(1-2), pages 171-181, August.
- Wilson, John D., 1986. "A theory of interregional tax competition," Journal of Urban Economics, Elsevier, vol. 19(3), pages 296-315, May.
- Siebert, Horst & Koop, Michael J., 1990. "Institutional competition: a concept for Europe?," Kiel Working Papers 440, Kiel Institute for the World Economy.
- Razin, Assaf & Sadka, Efraim, 1991.
"International tax competition and gains from tax harmonization,"
Elsevier, vol. 37(1), pages 69-76, September.
- Assaf Razin & Efraim Sadka, 1989. "International Tax Competition and Gains from Tax Harmonization," NBER Working Papers 3152, National Bureau of Economic Research, Inc.
- Coughlin, Peter J & Mueller, Dennis C & Murrell, Peter, 1990. "Electoral Politics, Interest Groups, and the Size of Government," Economic Inquiry, Western Economic Association International, vol. 28(4), pages 682-705, October.
- Gerber, Robert I. & Hewitt, Daniel P., 1987. "Tax competition and redistribution policy of local governments competing for business capital," Journal of Urban Economics, Elsevier, vol. 21(1), pages 69-82, January.
- Oates, Wallace E. & Schwab, Robert M., 1988. "Economic competition among jurisdictions: efficiency enhancing or distortion inducing?," Journal of Public Economics, Elsevier, vol. 35(3), pages 333-354, April.
- Ghosh, Atish R., 1991.
"Strategic aspects of public finance in a world with high capital mobility,"
Journal of International Economics,
Elsevier, vol. 30(3-4), pages 229-247, May.
- Ghosh, A.R., 1990. "Strtegic Aspects Of Public Finance In A World With High Capital Mobility," Papers 49, Princeton, Woodrow Wilson School - Discussion Paper.
- WILDASIN, David E., .
"Interjurisdictional capital mobility: Fiscal externality and a corrective subsidy,"
CORE Discussion Papers RP
831, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Wildasin, David E., 1989. "Interjurisdictional capital mobility: Fiscal externality and a corrective subsidy," Journal of Urban Economics, Elsevier, vol. 25(2), pages 193-212, March.
When requesting a correction, please mention this item's handle: RePEc:kie:kieliw:779. 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: (Dieter Stribny)The email address of this maintainer does not seem to be valid anymore. Please ask Dieter Stribny to update the entry or send us the correct email address
If references are entirely missing, you can add them using this form.