Policy Responses to Tax Competition - (National Bureau of Economic Research Conference Report) by David R Agrawal & James M Poterba & Owen M Zidar
About this item
Highlights
- A critical examination of the effects of tax competition.Policy Responses to Tax Competition provides an in-depth exploration of how jurisdictions design taxes on mobile economic factors.
- About the Author: David R. Agrawal is professor of economics and professor of law at the University of California, Irvine.
- 536 Pages
- Business + Money Management, Taxation
- Series Name: National Bureau of Economic Research Conference Report
Description
Book Synopsis
A critical examination of the effects of tax competition.
Policy Responses to Tax Competition provides an in-depth exploration of how jurisdictions design taxes on mobile economic factors. Tax competition between jurisdictions that seek to attract businesses and residents presents both opportunities and challenges. It can foster government efficiency and provide a counterweight to lobbying for increased spending, but it can also result in inefficiently low tax rates and revenue shortfalls as jurisdictions vie for tax bases. This volume examines the economic drivers and consequences of tax competition and presents empirical evidence on its effects.
Divided into three parts, the book first reviews existing research on the determinants and consequences of tax competition and related policy initiatives such as development incentives. The second section focuses on specific policies, such as the Kansas-Missouri noncompete pact and international measures like the OECD's Base Erosion and Profit Shifting initiative, that are designed to limit tax competition. It also considers the economic responses to these policies, the distributional impact of competition-reducing policies, and potential strategic reactions of other governments. The final section presents case studies of the effects of various policies, including inter-municipal cooperation in France and corporate tax equalization in Switzerland.
Altogether, this volume provides new insights into the nature of inter-jurisdictional tax competition and the range of potential responses available to jurisdictions at various levels in federal systems.
About the Author
David R. Agrawal is professor of economics and professor of law at the University of California, Irvine. James M. Poterba is the Mitsui Professor of Economics at MIT and president and CEO of the NBER. Owen M. Zidar is professor of economics and public affairs at Princeton University and a research associate of the NBER.
