The Library
Does tax competition really promote growth?
Tools
Koethenbuerger, Marko and Lockwood, Ben (2010) Does tax competition really promote growth? Journal of Economic Dynamics and Control, Vol.34 (No.2). pp. 191-206. doi:10.1016/j.jedc.2009.09.001 ISSN 0165-1889.
Research output not available from this repository.
Request-a-Copy directly from author or use local Library Get it For Me service.
Official URL: http://dx.doi.org/10.1016/j.jedc.2009.09.001
Abstract
This paper considers the relationship between tax competition and growth in an endogenous growth model where there are stochastic shocks to productivity, and capital taxes fund a public good which may be for final consumption or an infrastructure input. Absent stochastic shocks, decentralized tax setting (two or more jurisdictions) maximizes the rate of growth, as the constant returns to scale present with endogenous growth implies "extreme" tax competition. Stochastic shocks imply that households face a portfolio choice problem, which dampens down tax competition and may raise taxes above the centralized level. Growth can be lower with decentralization. Our results also predict a negative relationship between output volatility and growth with decentralization. (C) 2009 Elsevier B.V. All rights reserved.
Item Type: | Journal Article | ||||
---|---|---|---|---|---|
Subjects: | H Social Sciences > HC Economic History and Conditions | ||||
Divisions: | Faculty of Social Sciences > Economics | ||||
Journal or Publication Title: | Journal of Economic Dynamics and Control | ||||
Publisher: | Elsevier BV | ||||
ISSN: | 0165-1889 | ||||
Official Date: | February 2010 | ||||
Dates: |
|
||||
Volume: | Vol.34 | ||||
Number: | No.2 | ||||
Number of Pages: | 16 | ||||
Page Range: | pp. 191-206 | ||||
DOI: | 10.1016/j.jedc.2009.09.001 | ||||
Status: | Peer Reviewed | ||||
Publication Status: | Published | ||||
Access rights to Published version: | Restricted or Subscription Access |
Data sourced from Thomson Reuters' Web of Knowledge
Request changes or add full text files to a record
Repository staff actions (login required)
View Item |