International repercussions of direct taxes

No 99/02, CoFE Discussion Papers from University of Konstanz, Center of Finance and Econometrics (CoFE)

Abstract: This peper anlyzes the impact of tax competition between two countries of un- equal per-capita capital endownments on tax rates and efficiency when distorting wage, residence-based and source-based capital taxes (or any combination of two instruments) are available for governments. The national welfare costs and benefits of tax rate varia- tions are shown to be ambiguous in the asymmetric Nash equilibrium due to the existence of tax base and terms of trade effects. Moreover, numerical simulation results indicate that non-cooperative equilibria in Nash strategies are inefficient from an international perspective, even if residence-based capital taxes are in the set of tax instruments available to fiscal authorities.

JEL-codes: H2 H4 H7 (search for similar items in EconPapers)
Date: 1999
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: International Repercussions of Direct Taxes (2000)
Working Paper: International Percussions of Direct Taxes (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:cofedp:9902

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