Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/26158
Authors: 
Hühnerbein, Ossip
Seidel, Tobias
Year of Publication: 
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

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