International Tax Competition in the Global Economy
International Tax Competition in the Global Economy
- 세종대학교 경제통합연구소
- Journal of Economic Integration
- 제32권 제4호
-
2017.12842 - 872 (31 pages)
- 0

This study employs a Keynesian-type model of the global economy to investigate the impact of savings rate, openness, and population size on equilibrium tax rates and tax revenues in a world economy. Within the model, the marginal propensity to consume is represented by a matrix specifying each country’s income distribution. This study reveals that equilibrium tax rates are higher in countries with a higher rate of savings, greater level of openness, and smaller population size. If an infinitely large number of identical and highly integrated competing countries exist, then a system with indirect taxation has a lower equilibrium tax rate and higher tax revenues than a system with direct taxation. If a country with direct taxation and a country with indirect taxation compete, then the latter country has an advantage.
Ⅰ. Introduction
Ⅱ. Literature Review
Ⅲ. The Model
Ⅳ. Conclusion
(0)
(0)