Arbeitspapier

International Tax Coordination: Regionalism versus Globalism

Tax competition for mobile capital can undermine the attempts of governments to redistribute income from rich to poor. I study whether international tax coordination can alleviate this problem, using a general equilibrium model synthesizing recent contributions to the tax competition literature. The model highlights the crucial distinction between global tax coordination and regional coordination. With high capital mobility between the tax union and the rest of the world, the welfare gain from regional capital income tax coordination is only a small fraction of the gain from global coordination, even if the tax union is large relative to the world economy.

Language
Englisch

Bibliographic citation
Series: EPRU Working Paper Series ; No. 2001-08

Classification
Wirtschaft

Event
Geistige Schöpfung
(who)
Birch Sørensen, Peter
Event
Veröffentlichung
(who)
University of Copenhagen, Economic Policy Research Unit (EPRU)
(where)
Copenhagen
(when)
2001

Handle
Last update
10.03.2025, 11:41 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Birch Sørensen, Peter
  • University of Copenhagen, Economic Policy Research Unit (EPRU)

Time of origin

  • 2001

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