References
See inter alia M. Devereux, R. Griffith, A. Klemm: Corporate income tax reforms and international tax competition, in: Economic Policy, Vol. 17, Issue 35, 2002.
This is true both of the classical tax competition papers, which predict tax rates will be too low (J. D. Wilson: A theory of interregional tax competition, in: Journal of Urban Economics, Vol. 19, 1986; or G. R. Zodrow, P. Mieszkowski: Pigou, Tiebout, property taxation, and the underprovision of local public goods, in: Journal of Urban Economics, Vol. 19, 1986) and of models which predict that tax rates can be too high, because of tax-exporting (e.g. E. W. Bond, L. Samuelson: Strategic behaviour and the rules for international taxation of capital, in: Economic Journal, Vol. 99, 1989).
An example of the former is J. Edwards, M. Keen: Tax competition an Leviathan, in: European economic Review, Vol 40, 1996; the latter argument is made in R. Baldwin, P. Krugman: Agglomeration, integration and tax harmonisation, in: European Economic Review, Vol. 48, 2004.
See M. A. King, D. Fullerton: The taxation of income from capital, Chicago 1984, University of Chicago Press.
See M. P. Devereux, R. Griffith: Evaluating tax policy for location decisions, in: International Tax and Public Finance, Vol. 10, 2003.
See European Commission: Towards an internal market without tax obstacles, Communication from the European Commission COM (2001) 582 final, Brussels 2001.
Additional information
Senior Research Economist, Institute for Fiscal Studies, London, UK. The author wishes to thank the ESRC Centre for Public Policy at the IFS for financial support and Mike Devereux for helpful comments.
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Klemm, A. A minimum rate without a common base?. Intereconomics 39, 186–189 (2004). https://doi.org/10.1007/BF03032109
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DOI: https://doi.org/10.1007/BF03032109