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Title:Intra-regional tax competition and economic geography PDF Logo
Authors:Hühnerbein, Ossip
Seidel, Tobias
Issue Date:2007
Series/Report no.:CESifo working paper 2113
Abstract:We extent a solvable version of the core-periphery agglomeration model to four countries located in two regions. The paper shows that there might still be a race to the bottom in capital income tax rates despite agglomeration rents earned by the mobile factor. We find that intra-regional tax competition is detrimental from a welfare perspective and that tax harmonisation unambiguously makes both countries in the core region better off.
Subjects:tax competition
economic geography
race to the bottom
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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