Arbeitspapier
The role of mobility in tax and subsidy competition
In this paper, we analyse the role of mobility in tax and subsidy competition. Our primary result is that increasing ‘relocation’ mobility of firms leads to increasing ‘net’ tax revenues under fairly weak conditions. While enhanced relocation mobility intensifies tax competition, it weakens subsidy competition. The resulting fall in the governments’ subsidy payments over-compensates the decline in tax revenues, leading to a rise in net tax revenues. We derive this conclusion in a model in which two governments are first engaged in subsidy competition and thereafter in tax competition, and firms locate and potentially relocate in response to the two political choices.
- Sprache
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Englisch
- Erschienen in
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Series: Diskussionsbeiträge ; No. 2013-02
- Klassifikation
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Wirtschaft
International Fiscal Issues; International Public Goods
State and Local Taxation, Subsidies, and Revenue
International Investment; Long-term Capital Movements
Business Taxes and Subsidies including sales and value-added (VAT)
- Thema
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tax competition
subsidy competition
capital and firm mobility
foreign direct investment
- Ereignis
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Geistige Schöpfung
- (wer)
-
Haupt, Alexander
Krieger, Tim
- Ereignis
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Veröffentlichung
- (wer)
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Albert-Ludwigs-Universität Freiburg, Wilfried-Guth-Stiftungsprofessur für Ordnungs- und Wettbewerbspolitik
- (wo)
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Freiburg
- (wann)
-
2013
- Handle
- Letzte Aktualisierung
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10.03.2025, 11:44 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Haupt, Alexander
- Krieger, Tim
- Albert-Ludwigs-Universität Freiburg, Wilfried-Guth-Stiftungsprofessur für Ordnungs- und Wettbewerbspolitik
Entstanden
- 2013