Does tax competition really promote growth?

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Standard

Does tax competition really promote growth? / Köthenbürger, Marko; Lockwood, Ben.

I: Journal of Economic Dynamics and Control, Bind 34, Nr. 2, 2010, s. 191-206.

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt

Harvard

Köthenbürger, M & Lockwood, B 2010, 'Does tax competition really promote growth?', Journal of Economic Dynamics and Control, bind 34, nr. 2, s. 191-206. https://doi.org/10.1016/j.jedc.2009.09.001

APA

Köthenbürger, M., & Lockwood, B. (2010). Does tax competition really promote growth? Journal of Economic Dynamics and Control, 34(2), 191-206. https://doi.org/10.1016/j.jedc.2009.09.001

Vancouver

Köthenbürger M, Lockwood B. Does tax competition really promote growth? Journal of Economic Dynamics and Control. 2010;34(2):191-206. https://doi.org/10.1016/j.jedc.2009.09.001

Author

Köthenbürger, Marko ; Lockwood, Ben. / Does tax competition really promote growth?. I: Journal of Economic Dynamics and Control. 2010 ; Bind 34, Nr. 2. s. 191-206.

Bibtex

@article{6c199ff03fb611de87b8000ea68e967b,
title = "Does tax competition really promote growth?",
abstract = "This paper considers the relationship between tax competition and growth in an endogenous growth model where there are stochastic shocks to productivity, and capital taxes fund a public good which may be for final consumption or an infrastructure input. Absent stochastic shocks, decentralized tax setting (two or more jurisdictions) maximizes the rate of growth, as the constant returns to scale present with endogenous growth implies {"}extreme{"} tax competition. Stochastic shocks imply that households face a portfolio choice problem, which dampens down tax competition and may raise taxes above the centralized level. Growth can be lower with decentralization. Our results also predict a negative relationship between output volatility and growth with decentralization.",
keywords = "Faculty of Social Sciences, uncertainty, stochastic growth",
author = "Marko K{\"o}thenb{\"u}rger and Ben Lockwood",
note = "JEL classification: H77, E62, F43",
year = "2010",
doi = "10.1016/j.jedc.2009.09.001",
language = "English",
volume = "34",
pages = "191--206",
journal = "Journal of Economic Dynamics and Control",
issn = "0165-1889",
publisher = "Elsevier",
number = "2",

}

RIS

TY - JOUR

T1 - Does tax competition really promote growth?

AU - Köthenbürger, Marko

AU - Lockwood, Ben

N1 - JEL classification: H77, E62, F43

PY - 2010

Y1 - 2010

N2 - This paper considers the relationship between tax competition and growth in an endogenous growth model where there are stochastic shocks to productivity, and capital taxes fund a public good which may be for final consumption or an infrastructure input. Absent stochastic shocks, decentralized tax setting (two or more jurisdictions) maximizes the rate of growth, as the constant returns to scale present with endogenous growth implies "extreme" tax competition. Stochastic shocks imply that households face a portfolio choice problem, which dampens down tax competition and may raise taxes above the centralized level. Growth can be lower with decentralization. Our results also predict a negative relationship between output volatility and growth with decentralization.

AB - This paper considers the relationship between tax competition and growth in an endogenous growth model where there are stochastic shocks to productivity, and capital taxes fund a public good which may be for final consumption or an infrastructure input. Absent stochastic shocks, decentralized tax setting (two or more jurisdictions) maximizes the rate of growth, as the constant returns to scale present with endogenous growth implies "extreme" tax competition. Stochastic shocks imply that households face a portfolio choice problem, which dampens down tax competition and may raise taxes above the centralized level. Growth can be lower with decentralization. Our results also predict a negative relationship between output volatility and growth with decentralization.

KW - Faculty of Social Sciences

KW - uncertainty

KW - stochastic growth

U2 - 10.1016/j.jedc.2009.09.001

DO - 10.1016/j.jedc.2009.09.001

M3 - Journal article

VL - 34

SP - 191

EP - 206

JO - Journal of Economic Dynamics and Control

JF - Journal of Economic Dynamics and Control

SN - 0165-1889

IS - 2

ER -

ID: 12236597