IDEAS home Printed from https://ideas.repec.org/p/zbw/cofedp/9915.html
   My bibliography  Save this paper

Capital Tax Competition with Inefficient Government Spending

Author

Listed:
  • Eggert, Wolfgang

Abstract

Models of international tax competition typically assume the existence of a benevolent government. This paper presents a model which integrates the view of government as source of inefficiency with an analysis of distorting taxes on capital investment, savings and labor income in a common theoretical framework. The model yields the conclusion that the effects of international tax coordination on the welfare of residents can be ambiguous because the costs of inefficient public good supply are lowered but wateful government consumption is increased. However, the above finding is derived when the residence-based capital tax is not available. In contrast, government use of taxes clearly is inefficient from the viewpoint of residents in the presence of residence-based capital taxation.

Suggested Citation

  • Eggert, Wolfgang, 1999. "Capital Tax Competition with Inefficient Government Spending," CoFE Discussion Papers 99/15, University of Konstanz, Center of Finance and Econometrics (CoFE).
    • Handle: RePEc:zbw:cofedp:9915
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/85210/1/dp99-15.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Walter Hettich & Stanley L. Winer, 2000. "Rules, Politics and the Normative Analysis of Taxation," Carleton Economic Papers 00-12, Carleton University, Department of Economics, revised 2002.

    More about this item

    JEL classification:

    • H1 - Public Economics - - Structure and Scope of Government
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:cofedp:9915. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/zfkonde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.