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Tax Competition and Tax Coordination in the European Union: A Survey

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  • Keuschnigg, Christian

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  • Loretz, Simon

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  • Winner, Hannes

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Abstract

This survey summarizes the state and development of European tax policy, in particular discussing the harmonization progress in direct as well as indirect taxes. Based on an over-view over the theoretical and empirical literature on tax competition, we further ask whether increased tax coordination is necessary to prevent a race to the bottom. We show that theoretical predictions on the outcome of tax competition are ambiguous, and the empirical evidence in this regard is inconclusive as well. This, in turn, gives rise to an only limited scope of stronger tax harmonization.

Suggested Citation

  • Keuschnigg, Christian & Loretz, Simon & Winner, Hannes, 2014. "Tax Competition and Tax Coordination in the European Union: A Survey," Economics Working Paper Series 1427, University of St. Gallen, School of Economics and Political Science.
  • Handle: RePEc:usg:econwp:2014:27
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    Cited by:

    1. Streif, Frank, 2015. "Tax competition in Europe: Europe in competition with other world regions?," ZEW Discussion Papers 15-082, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    2. Sanz Córdoba, Patrícia & Theilen, Bernd, 1965-, 2016. "Partial tax harmonization through infrastructure coordination," Working Papers 2072/261535, Universitat Rovira i Virgili, Department of Economics.
    3. Huang, Wei Hong & Chen, Yang & Rudkin, Simon, 2014. "Dynamic Fiscal competition with public infrastructure investment: Austerity and attracting capital inflow," RIEI Working Papers 2014-03, Xi'an Jiaotong-Liverpool University, Research Institute for Economic Integration, revised 02 Mar 2016.

    More about this item

    Keywords

    Tax Competition; tax coordination; European economic integration;

    JEL classification:

    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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