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A Note on Home Bias and the Gain from Non-Preferential Taxation

Author

Listed:
  • Kaushal Kishore

    (Department of Economics, University of Pretoria)

Abstract

In a symmetric model of tax competition, we support the claim in Haupt and Peters (2005) that a non-preferential regime generates higher tax revenues compared to a preferential regime when investors have home bias. Further, we show that a complete ban on preferential taxation is desirable even when capital base is in?finitely elastic.

Suggested Citation

  • Kaushal Kishore, 2016. "A Note on Home Bias and the Gain from Non-Preferential Taxation," Working Papers 201632, University of Pretoria, Department of Economics.
    • Handle: RePEc:pre:wpaper:201632
    as

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    File URL: http://www.up.ac.za/media/shared/61/WP/wp_2016_32.zp85116.pdf
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    References listed on IDEAS

    as
    1. Janeba, Eckhard & Peters, Wolfgang, 1999. "Tax Evasion, Tax Competition and the Gains from Nondiscrimination: The Case of Interest Taxation in Europe," Economic Journal, Royal Economic Society, vol. 109(452), pages 93-101, January.
    2. Keen, Michael, 2001. "Preferential Regimes Can Make Tax Competition Less Harmful," National Tax Journal, National Tax Association, vol. 54(n. 4), pages 757-62, December.
    3. Keen, Michael, 2001. "Preferential Regimes Can Make Tax Competition Less Harmful," National Tax Journal, National Tax Association;National Tax Journal, vol. 54(4), pages 757-762, December.
    4. Haupt, Alexander & Peters, Wolfgang, 2005. "Restricting preferential tax regimes to avoid harmful tax competition," Regional Science and Urban Economics, Elsevier, vol. 35(5), pages 493-507, September.
    5. Kaushal Kishore, 2008. "Tax Competition, Imperfect Capital Mobility and the gain from non-preferential agreements," Departmental Working Papers 0804, Southern Methodist University, Department of Economics.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Tax competition; Nash Equilibrium; Non-preferential regime;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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