Social Sciences
8 years ago

Asymmetric countries shift tax competition, favoring ad valorem over unit tax.

International Review of Economics & Finance
When ad valorem tax prevails in international tax competition
Hikaru Ogawa

Paper Summary

Related papers

Business, Management and Accounting
2 years ago

Tax competition boosts economic development in small jurisdictions, lowers tax rates.

Tax Avoidance
Fiscal Decentralization
Tax Evasion
1 view
Business, Management and Accounting
4 years ago

Tax competition in EU leads to heavier burden on labor.

EU Tax Law
2 views
Business, Management and Accounting
6 years ago

Tax competition leads to lower tax rates in wealthier jurisdictions, study finds.

Tax Avoidance
Fiscal Decentralization
Infrastructure Impact
2 views

The article explores how different countries choose between two types of taxes when competing for capital. Previous studies assumed that all countries use the same tax method, but this research shows that is not the case. Capital importing countries prefer ad valorem tax, while capital exporting countries prefer unit tax. This finding challenges the previous belief that unit tax competition is always better for welfare.