Follow the Leader? Evidence on European and US Tax Competition

Autor:	Rosanne Altshuler, Timothy J. Goodspeed
Rok vydání:	2014
Předmět:	Economics and Econometrics Public Administration Public economics Tax competition Direct tax International economics Tax reform Tax avoidance Value-added tax Ad valorem tax State income tax Economics Finance Indirect tax
Zdroj:	Public Finance Review. 43:485-504
ISSN:	1552-7530 1091-1421
DOI:	10.1177/1091142114527781
Popis:	This article breaks from the previous empirical literature that estimates Nash tax reaction functions of national governments competing with other national governments assuming that competitors play a Nash game and adjust to a Nash equilibrium in every year. We question this assumption and explore whether one country plays a leadership role in tax competition using data from 1968 to 2008. We test the leadership role of the United States, the United Kingdom, and Germany, and find support for a US leadership role. We also investigate whether countries react differently immediately after watershed tax reforms such as the 1986 US Tax Reform Act or the 1984 UK tax reform. We find some support for a different reaction to the United States following the 1986 US reform, but not for the United Kingdom or Germany.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::1d7972169a3c8eaf1621e2e7f10c9566 https://doi.org/10.1177/1091142114527781 Zobrazit plný text záznamu