Skip to main content
SpringerLink
Log in
Book cover

National Tax Policy in Europe pp 45–68Cite as

Free Factor Mobility and Fiscal Competition: Can the National Welfare State Survive in a “United Europe”?

  • Chapter

Keywords

These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

This is a preview of subscription content, log in via an institution.

Chapter
USD   29.95
Price excludes VAT (Canada)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   84.99
Price excludes VAT (Canada)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   109.99
Price excludes VAT (Canada)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD   109.99
Price excludes VAT (Canada)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Alesina, A., Baqir, R. and W. Easterly (1999) Public goods and ethnic divisions, Quarterly Journal of Economics, 114(4), 1243-1284.

    CrossRef  Google Scholar 

  • Asdrubali, P., Sorensen, B. and O. Yosha (1996) Channels of interstate risk sharing: United States 1963-1990, Quarterly Journal of Economics, 111(4), 1081-1110.

    CrossRef  Google Scholar 

  • Baldwin R. and P. Krugman (2000) Agglomeration, integration and tax harmonization, mimeo Graduate Institute of International Studies, Geneva.

    Google Scholar 

  • Bénassy-Quéré, A., Gobalraja, N. and A. Trannoy (2005) Tax competition and public input, CEPII Working Paper , no 2005-08.

    Google Scholar 

  • Bertola, G., Boeri, T. and G. Nicoletti (2001) Welfare and Employment in a United Europe, Cambridge: MIT Press.

    Google Scholar 

  • Besley, T. and A. Case (1995) Incumbent behaviour: Vote-seeking, tax-seeking, and yardstick competition, American Economic Review, 85, 24-45.

    Google Scholar 

  • Black, D. and W. Hoyt (1989) Bidding for firms, American Economic Review, 79, 1249-1256.

    Google Scholar 

  • Boeri, T, Börsch-Supan, A. and G. Tabellini (2001) Would you like to shrink the welfare state? The opinions of European citizens, Economic Policy, 16(32), 7-50.

    CrossRef  Google Scholar 

  • Boeri, T. (2002) Let Social Policy Models Compete and Europe will win, paper presented at a conference hosted by the Kennedy School of Government, Harvard University.

    Google Scholar 

  • Böheim, R. and K. Mayr (2005) Immigration and public spending, IZA Discussion Paper No 1834.

    Google Scholar 

  • Borjas, G. (1999) Immigration and welfare magnets, Journal of Labour Economics, 17(4), 607-637.

    CrossRef  Google Scholar 

  • Brennan G. and J. M. Buchanan (1980) The power to tax: Analytical foundations of a fiscal constitution, Cambridge: Cambridge University Press.

    Google Scholar 

  • Breyer, E. and M. Kolmar (2002) Are national pension systems efficient if labour is (im)perfectly mobile, Journal of Public Economics, 83, 347-374.

    CrossRef  Google Scholar 

  • Brueckner, J. (2003) Strategic interaction among governments: An overview of empirical studies, International Regional Science Review, 26, 175-188.

    CrossRef  Google Scholar 

  • Brueckner, J. (2004) Fiscal decentralization with distortionary taxation: Tiebout vs tax competition, International Tax and Public Finance, 11, 133-153.

    CrossRef  Google Scholar 

  • Bucovetsky, S. (1991) Asymmetric tax competition, Journal of Urban Economics, 30, 167-181.

    CrossRef  Google Scholar 

  • Burbidge, J., Cuff, K., and J. Leach (2004) Tax competition with heterogeneous firms, Journal of Public Economics, 90, 53-549.

    Google Scholar 

  • Castles, F. (2001) On the political economy of recent public sector development, Journal of European Social Policy, 11(3), 195-211.

    CrossRef  Google Scholar 

  • Cnossen, S. (2003) How much tax competition in the European Union, International Tax and Public Finance, 10, 625-649.

    CrossRef  Google Scholar 

  • Cremer, H., and F. Gahvari (2000) Tax evasion, fiscal competition and economic integration, European Economic Review, 44, 1633-1657.

    CrossRef  Google Scholar 

  • Cremer, H. and P. Pestieau (2004) Factor mobility and redistribution: a survey, Handbook of Regional and Urban Economics, vol. 4, Amsterdam: North-Holland.

    Google Scholar 

  • Devereux, M., B., Lockwood, and M. Redoano (2002) Do countries compete over corporate tax rates, CEPR Working Paper No 3400, London.

    Google Scholar 

  • Domar,E. and R. Musgrave (1944) Property income taxation and risk taking, Quarterly Journal of Economics, 58, 387-422.

    CrossRef  Google Scholar 

  • Dreher, A. (2006) The influence of globalization on taxes and social policy: An empirical analysis for OECD countries, European Journal of Political Economy, 22, 179-201.

    CrossRef  Google Scholar 

  • Edwards, J. and M. Keen (1996) Tax competition and Leviathan, European Economic Review, 40, 113-134.

    CrossRef  Google Scholar 

  • Emerson, M., Aujean, M., Catinat, M., Coybet, P. and J. Alexis (1988) The Economics of 1992: The E.C. Commission’s Assessment of the Economic Effects of Completing the Internal Market, New York: Oxford Univesity Press.

    Google Scholar 

  • Esping-Andersen, G. (1990) The three worlds of welfare capitalism, Cambridge, Policy Press.

    Google Scholar 

  • Ferrera, M. (1998) The four social Europes: Between universalism and selectivity, in Rhodes, M. and Y. Meny (eds), The future of European welfare: A new social contract, Palgrave Macmillan.

    Google Scholar 

  • Fischel, W. (1975) Fiscal and environmental considerations in the location of firms in suburban communities, in Mills, E. and W. Oates (eds), Fiscal Zoning and Land Use Controls, DC Health, Lexington, MA.

    Google Scholar 

  • French, K. and J. Poterba (1991) Investors diversification, and international equity markets, American Economic Review, 81, 222-226.

    Google Scholar 

  • Gabe, T. and K. Bell (2004) Tradeoffs between local taxes and government spending as determinants of business location, Journal of Regional Studies, 44, 44, 21-41.

    CrossRef  Google Scholar 

  • Garrett, G. (1995) Capital mobility, trade and the domestic politics of economic policy, International Organization, 49, 657-687.

    Google Scholar 

  • Garrett, G. and D. Mitchell (1997) International risk and social insurance: Reassessing the globalization - welfare state nexus, Yale University, mimeo.

    Google Scholar 

  • Glazer, A., Kanniainan, V. and P. Poutvaara (2005) Income taxes, property values, and migration, paper presented at the IAES meetings in Berlin 2006.

    Google Scholar 

  • Griffith, R. and A. Klemm (2004) What has been the tax competition experience of the last 20 years?, The Institute for fiscal studies Working paper 04/05.

    Google Scholar 

  • Hansson, Å. and K. Olofsdotter (2005), Integration and tax competition; an empirical study of OECD countries, Scandiavian Working Papers in Economics, No 2005:4.

    Google Scholar 

  • Hansson, Å. and K. Olofsdotter (2008) Integration and the structure of public spending, University of Lund, forthcoming Comperative Politics Studies, 41(7). \bibitem Hatton, T. and J. Williamson (1994) International migration 1850-1939: An economic survey, in T. Hatton and J. Williamson (eds), Migration and the international labour market 1850-1939, London: Routledge.

    Google Scholar 

  • Hicks, A. and D. Swank (1992) Politics, institutions, and welfare spending in industrialized democracies 1960-1982, American Political Science Review, 86(3).

    Google Scholar 

  • Hindriks, J. (1999) The consequences of labor mobility for redistribution: tax vs. transfer competition, Journal of Public Economics, 74, 215-234.

    CrossRef  Google Scholar 

  • Homburg, S. and W. Richter (1993) Harmonizing public debt and public pension schemes in the European Community, Journal of Economic Supplements, 7, 51-64.

    Google Scholar 

  • Huizinga, H and G. Nicodemus (2003) Foreign ownership and corporate income taxation: an empirical evaluation, CEPR Discussion Paper, no 3952.

    Google Scholar 

  • Keen, M. and M. Marchand (1997) Fiscal competition and the pattern of public spending, Journal of Public Economics, 66, 33-53.

    CrossRef  Google Scholar 

  • King, I., McAfee, R. and yL. Welling (1993) Industrial blackmail: dynamic tax competition and public investment, Canadian Journal of Economics, 26, 590-608.

    CrossRef  Google Scholar 

  • Krogstrup, S. (2004) Are corporate taxes racing to the bottom in the European Union?, manuscript, The Graduate Institute of International Studies, Geneva.

    Google Scholar 

  • McLure, C. (1997) Tax Policies for the XXIst Century, in Visions of the Tax System of the XXIst Century, Hague: Kluwer.

    Google Scholar 

  • Mendoza, E., and L. Tesar (2005) Why hasn’t tax competition triggered a race to the bottom? Some quantitative lessons from the EU, Journal of Monetary Economics, 52, 163-204.

    CrossRef  Google Scholar 

  • Oates, W.E. (1972) Fiscal federalism, New York: Harcourt/Brace/Jovanovich.

    Google Scholar 

  • OECD (2001a) Public Expenditures, vol 2001, SourceOECD Social Expenditure Database.

    Google Scholar 

  • OECD (2001b) Economic Outlook, SourceOECD database.

    Google Scholar 

  • OECD (2004) Recent tax policy trends and reforms in OECD countries, OECD Tax Policy Studies, No 9, Paris: OECD.

    Google Scholar 

  • Orr, L. (1976) Income transfers as a public good: an application to AFDC, American Economic Review, 66, 359-371.

    Google Scholar 

  • Parry, I.(2003) How large are the welfare costs of tax competition?, Journal of Urban Economics, 54, 39-60.

    CrossRef  Google Scholar 

  • Pauly, M. (1973) Income redistribution as a local public good, Journal of Public Economics, 2, 35-58.

    CrossRef  Google Scholar 

  • Pemberton, J. (1999) Social security: national policies with international implications, Economic Journal, 109, 492-598.

    CrossRef  Google Scholar 

  • Poterba, J. (1997) Demographic structure and the political economy of public education, Journal of Policy Analysis and Management, 16, 48-66.

    CrossRef  Google Scholar 

  • Quinn, D. (1997) The correlates of change in international financial regulation, American Political Science Review, 91, 531-552.

    CrossRef  Google Scholar 

  • Razin, A. and E. Sadka (2000) Interactions between international migration and the welfare state, CESifo Working Paper No. 337.

    Google Scholar 

  • Razin, A. and E. Sadka (2001) Labor, capital and finance: international flows, Cambridge: Cambridge University Press.

    Google Scholar 

  • Razin, A., Sadka, E. and P. Swagel (2002) Tax burden and migration: a political economy theory and evidence, Journal of Public Economics, 85, 167-190.

    CrossRef  Google Scholar 

  • Ribar, D. and M. Wilhelm (1996) Welfare generosity: the importance of administrative efficiency, community values and genuine benevolence, Applied Economics, 28, 1045-1054.

    CrossRef  Google Scholar 

  • Rodrik, D. (1998) Why do more open economies have bigger government, Journal of Political Economy, 106, 997-1032.

    CrossRef  Google Scholar 

  • Sinn, H.W. (1990) Tax harmonisation and tax competition in Europe, European Economic Review, 34, 489-504.

    Google Scholar 

  • Sinn, H.W. (2002) EU enlargement and the future of the welfare state, Scottish Journal of Political Economy, 49, 104-105.

    CrossRef  Google Scholar 

  • Slemrod, J. (2004) Are corporate tax rates, or countries, converging?, Journal of Public Economics, 88, 1168-1186.

    CrossRef  Google Scholar 

  • Sørensen, P. (2004) International tax coordination: regionalism versus globalism, Journal of Public Economics, 88, 1187-1214.

    CrossRef  Google Scholar 

  • Stigler, G. J. (1957) The tenable range of functions of local government, in US Congress, joint economic committee (eds.), Federal expenditure policy for economic growth and stability, 213-219, Washington D.C.

    Google Scholar 

  • Swank, D. (2001) Mobile capital, democratic institutions, and the public economy in advanced industrial societies, Journal of Comparative Policy Analysis, 3, 133-162.

    CrossRef  Google Scholar 

  • Tanzi, V. (1998) The need for tax-coordination in an economically integrated world, in Roberti, P. (ed.), Financial markets and capital income taxation in a global economy, New York: Elsevier.

    Google Scholar 

  • Tanzi, V. (2002) Globalization and the future of social protection, Scottish Journal of Political Economy, 9, 116-127.

    CrossRef  Google Scholar 

  • Tanzi, V. and Bovenberg (1990) Is there a need for harmonizing capital income taxes within EC countries?, in Siebert, H., (ed.), Reforming capital income taxation, Mohr, Tübringen.

    Google Scholar 

  • Tesar, L. and I. Werner (1995) Home bias and high turnover, Journal of International Money and Finance, 14, 467-492.

    CrossRef  Google Scholar 

  • Tiebout, C. M. (1957) A pure theory of local expenditures, Journal of Political Economy, 64, 416-424.

    CrossRef  Google Scholar 

  • Wellisch, D. (2000) The theory of public finance in a federal state, New York: Cambridge University Press.

    Google Scholar 

  • White, M. (1975) Firm location in a zoned metropolitan area, in Mills, E. and W. Oates (eds), Fiscal Zoning and Land Use Controls, Lexington: DC Health.

    Google Scholar 

  • Wildasin, D. (1994) Public pensions in the EU: migration incentives and impacts, in A. Panagariya, P. Portney, and R., Schwab (eds), Environmental Economics and Public Policy: Essays in Honor of Wallace E. Oats, London: Edward Edgar.

    Google Scholar 

  • Wildasin, D. (1999) Theories of tax competition, National Tax Journal, 52, 269-304.

    Google Scholar 

  • Wildasin, D. (2000) Factor mobility and fiscal policy in the EU: policy issues and analytical approaches, Economic Policy, 338-378.

    Google Scholar 

  • Wilson, J. (1986) A theory of interregional tax competition, Journal of Urban Economics, 19, 296-315.

    CrossRef  Google Scholar 

  • Wilson, J. (1991) Tax competition with interregional differences in factor endowments, Regional Science and Urban Economics, 21, 423-451.

    CrossRef  Google Scholar 

  • Wilson, J. (2005) Welfare-improving competition for mobile capital, Journal of Urban Economics, 57, 1-18.

    CrossRef  Google Scholar 

  • Wilson, J. and D. Wildasin (2004) Capital tax competition: bane or boon, Journal of Public Economics, 88, 1065-1091.

    CrossRef  Google Scholar 

  • Winner, H. (2005) Has tax competition emerged in the OECD countries? Evidence from panel data, International Tax and Public Finance, 12, 667-687.

    CrossRef  Google Scholar 

  • Zodrow, G. (2003) Tax competition and tax harmonization in the European Union, International Tax and Public Finance, 10, 651-671.

    CrossRef  Google Scholar 

  • Zodrow, G., and P. Mieszkowski (1986) Pigou, property taxation and the underprovision of local public goods, Journal of Urban Economics, 19, 356-370.

    CrossRef  Google Scholar 

Download references

Authors
  1. Åsa Hansson
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. Confederation of Swedish Enterprises, Storgatan 19, 114 82 Stockholm, Sweden

    Krister Andersson

  2. Department of Finance and Accounting Tax Management Group, Vienna University of Economics and Business Administration, Althanstraße 39-45, 1090 Vienna, Austria

    Eva Eberhartinger

  3. Lund Institute of Economic Research, P.O. Box 7080, 220 07 Lund, Sweden

    Lars Oxelheim

Rights and permissions

Reprints and permissions

Copyright information

© 2007 Springer

About this chapter

Cite this chapter

Hansson, Å. (2007). Free Factor Mobility and Fiscal Competition: Can the National Welfare State Survive in a “United Europe”?. In: Andersson, K., Eberhartinger, E., Oxelheim, L. (eds) National Tax Policy in Europe. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-70711-0_3

Download citation

Publish with us

Policies and ethics

search

Navigation