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Search Costs and Corporate Income Tax Competition

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  • Kai A. Konrad

Abstract

This paper studies corporate tax competition if it is costly to learn some of the elements that determine the effective tax burden. Search cost may, but need not, eliminate the tax competition pressure. The outcome depends on the boundaries of tax rate and tax base choices. Search cost can explain the empirically observed tax cuts cum base broadening.

Suggested Citation

  • Kai A. Konrad, 2010. "Search Costs and Corporate Income Tax Competition," CESifo Working Paper Series 3224, CESifo.
    • Handle: RePEc:ces:ceswps:_3224
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    References listed on IDEAS

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    Cited by:

    1. Becker, Johannes & Runkel, Marco, 2012. "Even small trade costs restore efficiency in tax competition," Journal of Urban Economics, Elsevier, vol. 72(2), pages 191-195.
    2. Keisuke Kawata, 2013. "Capital market integration and optimal employment protection policies," IDEC DP2 Series 3-9, Hiroshima University, Graduate School for International Development and Cooperation (IDEC).

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    More about this item

    Keywords

    costly search; tax competition; corporate taxation; monopoly pricing paradox;
    All these keywords.

    JEL classification:

    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods

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