scholarly journals Asymmetric competition in the setting of diesel excise taxes in EU countries

2013 ◽  
Vol 63 (4) ◽  
pp. 423-450 ◽  
Author(s):  
László Paizs
Keyword(s):  
Tax Competition ◽  
Western Europe ◽  
Strategic Interaction ◽  
Competition Model ◽  
Tax Rates ◽  
Elastic Demand ◽  
Country Size ◽  
Eu Countries ◽  
Excise Taxes ◽  
Tax Changes

This paper tests new implications of the asymmetric tax competition model on diesel excise taxes. We extend the standard tax competition model by replacing the unit demand assumption with iso-elastic demand. As a result, not only the level of the equilibrium tax, but also the slope of the tax reaction function depends positively on the size of the country. The new implication is tested on panel data in first differences for 16 countries of Western Europe. The results provide strong evidence for strategic interaction in the setting of diesel excises and confirm the effect of country size on the response to tax changes in neighbouring countries. Strategic interaction between EU countries intensified in the mid-1990s and drove small European countries to set lower diesel tax rates. These results explain why the EU’s minimum tax policy has failed to harmonise diesel tax rates.

scholarly journals Dynamic tax competition between symmetric countries with multiple strategic investors

2021 ◽  
Author(s):  
Kaushal Kishore
Keyword(s):  
Tax Competition ◽  
Initial Period ◽  
Strategic Interaction ◽  
Tax Rates ◽  
Mixed Strategies ◽  
Full Characterization ◽  
Tax Holidays

Abstract Two symmetric countries compete over two-period under a non-preferential taxation regime to attract multiple investors where investors are strategic and investments are sunk once invested. Contrary to the existing results, we find that tax holidays do not arise during the initial period. Equilibria in mixed strategies arise in both periods where competing countries set strictly positive tax rates during the initial period. Strategic interaction between large investors reduces competition and increases tax rates during the initial period. We provide full characterization and uniqueness of equilibria in mixed strategies.JEL classification: F21, H21, H25, H87

scholarly journals How Socialization Attenuates Tax Competition

2014 ◽  
Vol 46 (1) ◽  
pp. 45-65 ◽  
Author(s):  
Fabrizio Gilardi ◽  
Fabio Wasserfallen
Keyword(s):  
Tax Competition ◽  
Competitive Dynamics ◽  
General Idea ◽  
Intergovernmental Organizations ◽  
Tax Rates ◽  
Strongly Correlated ◽  
Spatial Econometric ◽  
Policy Makers ◽  
Fine Grained ◽  
Tax Changes

Tax competition is the quintessential example of policy interdependence. The general idea is that tax changes in one jurisdiction lead to similar changes in others. However, research has shown that institutional and political constraints limit competition. This article develops another argument: that socialization among policy makers attenuates competitive dynamics by setting limits to the extent of competition that is considered acceptable. Using fine-grained Swiss data and spatial econometric techniques, it shows that personal income tax rates are more strongly correlated among competitors that do not participate in the same intergovernmental organizations. This finding implies that, to some extent, the detrimental consequences of competition can be mitigated by fostering institutionalized forms of interaction among policy makers.

The Relation of Indirect Tax Changes to Price Changes in Pakistan

1965 ◽  
Vol 5 (1) ◽  
pp. 54-63
Author(s):  
Ghulam Mohammad Radhu
Keyword(s):  
Practical Interest ◽  
Tax Rates ◽  
Price Changes ◽  
Excise Taxes ◽  
Indirect Taxes ◽  
Domestic Prices ◽  
Standard Rate ◽  
Great Practical Interest ◽  
Tax Changes ◽  
The Relationship

This study examines the effects of indirect taxes on prices in Pakistan. It is not a thorough study of the incidence of indirect taxes. It is an attempt to determine the relationship between changes in indirect tax rates and price changes. There have been several changes in the rates of sales and excise taxes in Pakistan in the past few years. The standard rate of sales tax was increased from 10 per cent to 12.5 per cent in 1960, and to 15 per cent in 1963. The rates of excises have been modified from time to time. It should be of great practical interest to see whether these taxes have been shifted to consumers or borne by producers and sellers. Since one study of the effect of import duties on domestic prices of imports has been done recently in the Pakistan Institute of Development Economics |4], and further study of that aspect of the matter is going on, this study covers only sales and excise taxes.

scholarly journals Tax Competition Or Tax Coordination? What Is Better For The European Union?

2015 ◽  
Vol 18 (2) ◽  
pp. 37-55 ◽  
Author(s):  
Joanna Działo
Keyword(s):  
Tax Competition ◽  
Developed Countries ◽  
Modern Technology ◽  
Real Problem ◽  
Tax Rates ◽  
The European Union ◽  
Tax Havens ◽  
Tax Coordination ◽  
Eu Countries ◽  
The Eu

Tax competition is defined as the use of tax policy that will allow to maintain or increase the attractiveness of a particular territory for business location. Tax competition is used especially by the relatively under-developed countries, as foreign capital inflow gives them the possibility to implement modern technology, new management methods, or to increase exports. One of the effects of tax competition is the formation of tax havens, i.e. countries or territories offering preferential tax rates in order to gain capital from abroad. A comparative analysis of the income tax rates in the EU countries and certain tax havens shows that despite the progressive reduction of the rates of these taxes in the EU, the phenomenon of tax competition is still very strong, and the position of tax havens as countries with relatively low or very low taxes seems to be unthreatened. The question arises whether tax competition is a real problem for the EU Member States and if there exist arguments for tax harmonization, or at least tax coordination within the EU countries. The discussion in this paper suggests that the arguments for tax coordination in the EU are not yet strong enough. However, both tax competition and tax coordination have their supporters and opponents.

A Tiebout/tax-competition model

2000 ◽  
Vol 77 (2) ◽  
pp. 285-306 ◽  
Author(s):  
Jan K. Brueckner
Keyword(s):  
Tax Competition ◽  
Competition Model

scholarly journals SMALL FARMS IN THE AREA STRUCTURE OF AGRICULTURAL HOLDINGS OF THE EUROPEAN UNION COUNTRIES

2020 ◽  
Vol 19 (1) ◽  
pp. 61-70
Author(s):  
Jacek Strojny
Keyword(s):  
Western Europe ◽  
European Countries ◽  
The European Union ◽  
Small Farm ◽  
Objective Criterion ◽  
The Czech Republic ◽  
Eu Countries ◽  
The North ◽  
Southern European Countries ◽  
Agrarian Structure

In spite of the evolution of the agrarian structure in EU countries (particularly in Western Europe) the problem of small agricultural holdings is still relevant, as this form of farming remains functional. The term ‘small farm’ has an ambiguous character. Thus, the study is based on relatively the most objective criterion for identification of small holdings – farms covering areas below 5 ha. The study employs the statistical method of vector elimination, which enables separation of subgroups with similar, homogeneous agrarian structures from among the studied set. The typology of the agrarian structure by means of the taxonomic technique demonstrates how diverse EU countries are with regard to their small agricultural holdings: Southern European countries, some Central European countries, and other states lying in the north of Europe. Additionally, the structure of small agricultural holdings is distinct in Denmark and in the Czech Republic.

scholarly journals What are effects of tax changes on market risk? - a case in listed Viet Nam investment and financial service companies

2021 ◽  
Vol 7 (Extra-E) ◽  
pp. 497-504
Author(s):  
Phan Anh ◽  
Nguyen Dinh Trung ◽  
Dinh Tran Ngoc Huy
Keyword(s):  
Service Industry ◽  
Stock Exchange ◽  
Market Risk ◽  
Financial Service ◽  
Viet Nam ◽  
Tax Rates ◽  
Tax Rate ◽  
Financial Service Industry ◽  
Global Stock Markets ◽  
Tax Changes

The financial crisis has been affected many global stock markets, as well as the Viet Nam stock exchange. This study analyzes the impacts of tax policy on market risk for the listed firms in the non-banking financial service and investment industry, so-called financial service industry, as it becomes necessary. First, by using quantitative and analytical methods to estimate asset and equity beta of total 10 listed companies in Viet Nam financial service industry with a proper traditional model, we found out that the beta values, in general, for many companies are acceptable. Second, under 3 different scenarios of changing tax rates (20%, 25% and 28%), we recognized that there is not large disperse in equity beta values, estimated at 1,048, 1,050 and 1,052.These values are just little higher than those of the listed VN construction firms but much higher than those of listed banking firms. Third, by changing tax rates in 3 scenarios (25%, 20% and 28%), we recognized equity /asset beta are most the same (0,23 and 0,16) if tax rate increases from 20% to 25%, then goes up from 25% to 28%.

scholarly journals THE IMPACT OF TAX POLICY ON ECONOMIC GROWTH, INCOME DISTRIBUTION, AND ALLOCATION OF TAXES

2006 ◽  
Vol 23 (2) ◽  
pp. 28-52 ◽  
Author(s):  
James D. Gwartney ◽  
Robert A. Lawson
Keyword(s):  
Economic Growth ◽  
Income Distribution ◽  
Income Tax ◽  
Tax Rates ◽  
Personal Income Tax ◽  
Income Groups ◽  
Marginal Tax Rates ◽  
Tax Changes ◽  
The Impact ◽  
Distribution Of Income

Using a sample of seventy-seven countries, this paper focuses on marginal tax rates and the income thresholds at which they apply to examine how the tax changes of the 1980s and 1990s have influenced economic growth, the distribution of income, and the share of taxes paid by various income groups. Many countries substantially reduced their highest marginal rates during the 1985-1995 period. The findings indicate that countries that reduced their highest marginal rates grew more rapidly than those that maintained high marginal rates. At the same time, the income distribution in several of the tax cutting countries became more unequal while there was little change or even a reduction in income inequality in most countries that maintained high marginal rates. Finally, the evidence suggests that there was a shift in the payment of the personal income tax away from those with low and middle incomes and toward those with the highest incomes.

Islamophobia and the Challenges of Muslims in Contemporary Eropean Union Countries: Case Studies from Austria, Belgium, and Germany

Afkaruna ◽  
2021 ◽  
Vol 17 (1) ◽  
Author(s):  
Muhammad Wildan ◽  
Fatimah Husein
Keyword(s):  
European Union ◽  
Western Europe ◽  
Field Research ◽  
The Balkans ◽  
Eu Countries ◽  
European Culture ◽  
Muslim Communities ◽  
Historical Accounts ◽  
Almost All ◽  
European Union Member States

In the last two decades, the Muslim population in Western Europe has grown in unprecedented ways. At the broader regional level, there are approximately 25 million Muslims living in European Union member states as of 2016, which is estimated to increase to 35 million by 2050. The arrival of Muslims from various countries in the Middle East, Africa, and the Balkans has brought about significant changes and issues socially, economically, as well as politically. Undeniably, some phenomena of discrimination and Islamophobia arise in almost all EU countries in various aspects of public life such as hijâb clothing, building mosques, and housing. Using a qualitative approach and field research, this article explores not only the historical accounts of the presence of Islam in several EU countries, but also the relations between Islam and the state. This research presents several cases of discrimination and Islamophobia and the internal dynamics within the Muslim communities as to the challenges of living in completely different atmosphere. Three countries, namely Austria, Belgium, and Germany are chosen to represent European Union countries. This study contributes to the discourse on the integration of Muslims in European culture and to the way EU countries could involve Muslims in constructing European Islam.

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