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Further analysis on leadership in tax competition: the role of capital ownership

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  • Hikaru Ogawa

Abstract

This paper extends the work of Kempf and Rota-Graziosi (J. Pub. Econ. 94:768–776, 2010 ), which argues that under capital tax competition the sub-game perfect equilibria (SPEs) correspond to two Stackelberg outcomes. The findings show that the Kempf and Rota-Graziosi result depends on the form of capital ownership. By generalizing the form of capital ownership, this paper shows that the simultaneous-move outcome prevails as an SPE if the capital is owned by residents in the countries, whereas the Kempf and Rota-Graziosi argument holds if the capital is owned by nonresidents. Copyright Springer Science+Business Media, LLC 2013

Suggested Citation

  • Hikaru Ogawa, 2013. "Further analysis on leadership in tax competition: the role of capital ownership," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 20(3), pages 474-484, June.
    • Handle: RePEc:kap:itaxpf:v:20:y:2013:i:3:p:474-484
    DOI: 10.1007/s10797-012-9238-8
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    References listed on IDEAS

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    More about this item

    Keywords

    Tax competition; Endogenous timing; Capital ownership; H30; H87;
    All these keywords.

    JEL classification:

    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods

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