Tax competition with imperfect capital movements and tax bands convergence
(2005) 61st Congress of the IIPF — Location: Jeju, South Korea
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- Authors
- Abstract
- (en) This paper analyzes tax competition in a simple dynamic framework. We expand the classical conclusions of the tax competition literature examining the effects of imperfect capital mobility. Especially, we are concerned about Wildasin (2003) findings that "The locally-optimal tax on mobile factors is lower, the faster the speed with which factors adjust to fiscal policy", and we show that it may not be the case in the long run, suggesting that government attempts to restrict capital movements may be counterproductive. Additionally, we examine the determination of tax bands for tax harmonization.
- Affiliations
Louvain School of Management Accounting & Finance
Citations
Ruiz, F. (2005). Tax competition with imperfect capital movements and tax bands convergence. 61st Congress of the IIPF, Jeju, South Korea. https://hdl.handle.net/2078.5/129890