search query: @indexterm economic geography / total: 98
reference: 17 / 98
« previous | next »
Author:Baldwin, R.E.
Krugman, P.
Title:Agglomeration, integration and tax harmonisation
Journal:European Economic Review
2004 : FEB, VOL. 48:1, p. 1-23
Index terms:Economic geography
Taxation
Competition
Tax harmonization
Trade
Language:eng
Abstract:Consideration of agglomeration reverses standard theoretical propositions in international tax competition. This study shows greater economic integration may lead to a 'race to the top' rather than race to the bottom. Also, 'split the difference' tax harmonisation may harm both nations, a result that may explain why real-world tax harmonisation is rare. The key is that industrial concentration creates agglomeration rent. The 'core' region can thus charge a higher tax rate without losing capital. The size of such rent is a bell-shaped function of the level of integration, so the tax gap first widens before narrowing as integration increases.
SCIMA record nr: 252956
add to basket
« previous | next »
SCIMA