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Is there evidence of strategic corporate tax interaction among EU countries?

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  • Ruiz, Fernando
  • Gerard, Marcel

Abstract

In this paper we empirically investigate whether EU countries set their corporate tax interdependently and, at the same time, we examine which space may be relevant in the construction of this association. Our findings indicate the presence of tax interdependency among the EU-15 in statutory and effective corporate taxes based on the tax codes. Moreover, corporate taxes in the EU-15 seem to suffer from common external shocks.

Suggested Citation

  • Ruiz, Fernando & Gerard, Marcel, 2008. "Is there evidence of strategic corporate tax interaction among EU countries?," MPRA Paper 10094, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:10094
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    File URL: https://mpra.ub.uni-muenchen.de/10094/1/MPRA_paper_10094.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Karen Crabbé, 2013. "Are Your Firm´s Taxes Set in Warsaw? Spatial Tax Competition in Europe," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 69(3), pages 317-337, September.
    2. Michael P. Devereux & Simon Loretz, 2013. "What Do We Know About Corporate Tax Competition?," National Tax Journal, National Tax Association;National Tax Journal, vol. 66(3), pages 745-774, September.
    3. Markus Leibrecht & Claudia Hochgatterer, 2012. "Tax Competition As A Cause Of Falling Corporate Income Tax Rates: A Survey Of Empirical Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 26(4), pages 616-648, September.
    4. Hansson, Åsa & Porter, Susan & Perry Williams, Susan, 2012. "The Effect of Political and Economic Factors on Corporate Tax Rates," Working Paper Series 942, Research Institute of Industrial Economics.
    5. Nicolas Chatelais & Mathilde Peyrat, 2008. "Are Small countries leaders of the European tax competition ?," Post-Print halshs-00332479, HAL.
    6. Ortmann, Regina, 2015. "Uncertainty in weighting formulary apportionment factors and its impact on after-tax income of multinational groups," arqus Discussion Papers in Quantitative Tax Research 184, arqus - Arbeitskreis Quantitative Steuerlehre.
    7. Åsa Hansson & Susan Porter & Susan Williams, 2015. "The importance of the political process on corporate tax policy," Constitutional Political Economy, Springer, vol. 26(3), pages 281-306, September.
    8. David Bartolini & Raffaella Santolini, 2012. "Political yardstick competition among Italian municipalities on spending decisions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(1), pages 213-235, August.

    More about this item

    Keywords

    Tax mimicking; tax competition; spatial panel;

    JEL classification:

    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects

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