Files and links (1)
SubmittedOpen Access (License Unspecified), Open
Journal article
Public Goods and Tax Competition in a Two-Sided Market
Journal of public economic theory, v 12(2), pp 281-321
01 Apr 2010
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
A rather neglected issue in the tax competition literature is the dependence of equilibrium outcomes on the presence of firms and shoppers (two-sided markets). Making use of a model of vertical and horizontal differentiation, within which jurisdictions compete by providing public goods and levying taxes in order to attract firms and shoppers, this paper characterizes the noncooperative equilibrium. It also evaluates the welfare implications for the jurisdictions of a popular policy of tax coordination: The imposition of a minimum tax. It is shown that the interaction of the two markets affects the intensity of tax competition and the degree of optimal vertical differentiation chosen by the competing jurisdictions. Though the noncooperative equilibrium is, as it is typically the case, inefficient such inefficiency is mitigated by the strength of the interaction in the two markets. A minimum tax policy is shown to be effective when the strength of the interaction is weak and ineffective when it is strong.
Metrics
Details
- Title
- Public Goods and Tax Competition in a Two-Sided Market
- Creators
- Christos Kotsogiannis - University of ExeterKonstantinos Serfes - Drexel University
- Publication Details
- Journal of public economic theory, v 12(2), pp 281-321
- Publisher
- Wiley
- Number of pages
- 41
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Economics (School of Economics)
- Web of Science ID
- WOS:000276151100004
- Scopus ID
- 2-s2.0-77955028892
- Other Identifier
- 991019168729504721
UN Sustainable Development Goals (SDGs)
This publication has contributed to the advancement of the following goals:
InCites Highlights
Data related to this publication, from InCites Benchmarking & Analytics tool:
- Collaboration types
- Domestic collaboration
- International collaboration
- Web of Science research areas
- Economics