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Исследование Равновесий Налоговой Конкуренции В Условиях Монополистической Конкуренции Налогоплательщиков
[Tax competition equilibria analysis under taxpayers' monopolistic competition]

Author

Listed:
  • Kolesnik, Georgiy
  • Leonova, Natalia

Abstract

The effect of taxpyers' competition at jurisdictions' local markets on the properties of the tax competition equilibrium is studied. The general equilibrium model is considered with mobile firms acting under monopolistic competition on local markets. It is shown that equilibrium tax rate tends to grow when the conditions of the firms' functioning are worsening because of any reason. The peculiar effect is multiple equilibria appearance if the profit of the firms is not monotonic function of their quantity.

Suggested Citation

  • Kolesnik, Georgiy & Leonova, Natalia, 2011. "Исследование Равновесий Налоговой Конкуренции В Условиях Монополистической Конкуренции Налогоплательщиков [Tax competition equilibria analysis under taxpayers' monopolistic competition]," MPRA Paper 47314, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:47314
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    File URL: https://mpra.ub.uni-muenchen.de/47314/1/MPRA_paper_47314.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    taxation; tax competition; race to the bottom; multi-level competition; hierarchical system; extensive form game; subgame-perfect equilibrium;
    All these keywords.

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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