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http://hdl.handle.net/2445/116571
Title: | Tax competition with heterogeneous capital mobility |
Author: | Mongrain, Steeve Wilson, John D. |
Keywords: | Administració fiscal Impostos Moviments de capital Tax administration and procedure Taxation Capital movements |
Issue Date: | 2011 |
Publisher: | Institut d’Economia de Barcelona |
Series/Report no: | [WP E-IEB11/25] |
Abstract: | In this paper, we look at corporate fiscal policies set by two competing regions in an environment where firms are heterogonous regarding to their mobility costs. We show that if regions are allow to tax domestic and foreign capital at different rates, they will offer a preferential treatment to foreign firms, even if mobility costs are symmetrically distributed across regions. Preventing such type of preferential treatment raises revenues for both regions, unless there exist a high density of firms with low moving costs. Because preferential tax treatment promotes firms movement for fiscal raisons, such tax regime always generates more social loss due to unnecessary delocalization. We also investigate the effect of heterogeneity among regions. |
Note: | Reproducció del document publicat a: http://www.ieb.ub.edu/2012022157/ieb/ultimes-publicacions |
It is part of: | IEB Working Paper 2011/25 |
URI: | http://hdl.handle.net/2445/116571 |
Appears in Collections: | IEB (Institut d’Economia de Barcelona) – Working Papers |
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IEB11-25_Mongrain.pdf | 543.47 kB | Adobe PDF | View/Open |
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