Lockwood, Ben (2000) Tax competition and tax co-ordination under destination and origin principles: a synthesis. Working Paper. Coventry: University of Warwick, Department of Economics. (Warwick economic research papers.

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Abstract

This paper proposes a general framework for analysing commodity tax competition under destination and origin principles, based on three possible tax spillovers, the consumer price spillover, the producer price/terms of trade spillover, and rent spillovers. A model is presented which can be extended to accomodate all three spillovers. Using this model, many of the results in the existing literature can be derived, compared, and extended.

Item Type:	Working or Discussion Paper (Working Paper)
Subjects:	H Social Sciences > HJ Public Finance
Divisions:	Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH):	Taxation, Competition, Externalities (Economics), Intergovernmental tax relations, Intergovernmental fiscal relations
Series Name:	Warwick economic research papers
Publisher:	University of Warwick, Department of Economics
Place of Publication:	Coventry
Date:	July 2000
Number:	No.567
Number of Pages:	53
Status:	Not Peer Reviewed
Access rights to Published version:	Open Access
Description:	First version, October 1998; this version, July 2000
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Keen (1987) “Welfare e¤ects of commodity tax harmonization”, Journal of Public Economics 33, 107-114 40 M.Keen(1989) “Pareto-improving indirect tax harmonization”, European Economic Review 33, 1-12 M.Keen and S.Lahiri (1993) “Domestic tax reformand international oligopoly”, Journal of Public Economics 51, 55-74 M.Keen and S.Lahiri (1998), “The comparison between destination and origin principles under imperfect competition, Journal of Public Economics 45, 323-350 M.Keen, S.Lahiri, and P.Raimondos-Moller (1998) “When is Policy Harmonization Desirable?”, EPRU Working Paper 98-02, University of Copenhagen M.Keen and S.Smith (1996), “The future of VAT in the European Union”, Economic Policy 23, 373-411 J.Kennan and R.Riezman (1998), “Do big countries win tari¤ wars?”, International Economic Review, 29, 81-85 R.Krelove(1992), “E¢cient tax exporting”, Canadian Journal of Economics, 25, 145-55 S.Lahiri and P.Raimondos-Moller, (1998) “Public good provision and the welfare e¤ects of indirect tax harmonization”, Journal of Public Economics 67, 253- 267 B.Lockwood (1993), “Commodity tax competition under destination and origin principles”, Journal of Public Economics 52, 141-162 B.Lockwood(1997), “Can commodity tax harmonization be Pareto-improving when governments supply public goods?”, Journal of International Economics 1997,43, 387-408 B.Lockwood, D.deMeza and G.Myles(1994), “When are origin and destination regimes equivalent?”, International Tax and Public Finance, 1, B.Lockwood, D.de Meza and G.Myles(1994a) “The equivalence between destination and non-reciprocal restricted origin tax regimes”, Scandinavian Journal of Economics, 96, 311-328 J.McMillan, (1986), Game Theory in International Economics, Harwood M-A.Lopez-Garcia (1996) “The origin principle and the welfare gains from indirect tax harmonization”, International Tax and Public Finance 3, 83-93 Lopez-Garcia(1997), “On welfare and revenue e¤ects of indirect tax harmonization”, unpublished paper, Universidad Autonoma de Barcelona J.Mintz and H.Tulkens (1986) “Commodity tax competition between member states of a federation: equilibrium and e¢ciency”, Journal of Public Economics 29, 133-172 S.B.Nielsen (1998) “A simple model of commodity taxation and cross-border shopping”, unpublished paper, EPRU, Copenhagen Business School 41 H.Shibata (1967), “The theory of economic unions”, in C.S.Shoup (ed.) 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URI:	http://wrap.warwick.ac.uk/id/eprint/1610

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