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Do we have to fear tax competition among “new” and “old” European countries?

Author

Listed:
  • Thierry Madiès

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

  • Simon Schnyder
  • Malgorzata Wasmer

Abstract

The purpose of this paper is to study both theoretically and empiricallytax competition in the enlarged EU and to provide someinsights on ongoing reforms concerning business taxation. We supportthe idea that even if one can observe cuts in "new" membersstatutory business tax rates, this should not result in fiercer taxcompetition between the "core" and "the "periphery" since infrastructureendowments and the existence of agglomeration rents inthe core of the EU may prevent (at least partially) activities to relocateto the "new" members.

Suggested Citation

  • Thierry Madiès & Simon Schnyder & Malgorzata Wasmer, 2006. "Do we have to fear tax competition among “new” and “old” European countries?," Post-Print halshs-00277793, HAL.
    • Handle: RePEc:hal:journl:halshs-00277793
    as

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