Tax Competition and Global Interdependence

State Capacity, Capital Mobility, and Tax Competition

Abstract The theory of international tax competition suggests that governments attempt to attract mobile capital bases by undercutting the foreign capital tax rate. An analysis of the role that state capacity plays in tax policymaking under international pressures is, however, missing. The central contribution of our study is to highlight the importance of the interaction between state capaci...

Tax Avoidance, Tax Competition and Globalisation: making tax justice a focus for global activism

Hidden from the public eye financial capital has been completely reconfigured over the past thirty years in order to bypass nationally-based tax and regulatory regimes. Using the 70 plus tax havens dotted across the globe, wealthy individuals and transnational businesses have adopted highly aggressive tax avoidance strategies, whilst also forcing the governments of mainstream nations to engage ...

Tax Compliance and Firms' Strategic Interdependence

We focus on a relatively neglected area of the tax-compliance literature in economics, the behaviour of rms. We examine the impact of alternative audit rules on receipts from a tax on pro ts in the context of strategic interdependence of rms. In the market rms may compete in terms of either output or price. The enforcement policy can have an e ect on rms' behaviour in two dimensions { their mar...

Agglomeration and Tax Competition

Tax competition for a mobile factor is different in ‘new economic geography settings’ compared to standard tax competition models. The agglomeration rent which accrues to the mobile factor in the core region can be taxed. Moreover, a tax differential between the core and the periphery can be maintained. The present paper reexamines this issue in a setting which, in addition to the core-peripher...

Global Interdependence and Biosocial Systems