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ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >
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http://hdl.handle.net/10419/26158
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| Title: | | Intra-regional tax competition and economic geography  |
| 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 |
| JEL: | | F12 H87 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
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