haku: @indexterm economic geography / yhteensä: 98
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| Tekijä: | Baldwin, R.E. Krugman, P. |
| Otsikko: | Agglomeration, integration and tax harmonisation |
| Lehti: | European Economic Review
2004 : FEB, VOL. 48:1, p. 1-23 |
| Asiasana: | Economic geography Taxation Competition Tax harmonization Trade |
| Kieli: | eng |
| Tiivistelmä: | 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. |
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