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When is Policy Harmonisation Desirable?

Author

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  • Michael Keen
  • Sajal Lahiri
  • Pascalis Raimondos-Møller

Abstract

This paper establishes, in a very general setting, necessary and sufficient conditions for harmonization of economic policies to be welfare-improving. As an application, it is shown that under circumstances in which harmonization is known to be welfare-improving when taxes are levied on a destination basis it is unambiguously welfare-reducing when (as the European Commission has recently proposed) they are levied on an origin basis.

Suggested Citation

  • Michael Keen & Sajal Lahiri & Pascalis Raimondos-Møller, "undated". "When is Policy Harmonisation Desirable?," EPRU Working Paper Series 98-02, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
    • Handle: RePEc:kud:epruwp:98-02
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    Cited by:

    1. Dirk Schindler & Guttorm Schjelderup, 2006. "Company Tax Reform in Europe and its Effect on Collusive Behavior," CESifo Working Paper Series 1702, CESifo.
    2. Dirk Schindler & Guttorm Schjelderup, 2009. "Harmonization of Corporate Tax Systems and Its Effect on Collusive Behavior," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 11(4), pages 599-621, August.
    3. Lockwood, Ben, 2001. "Tax competition and tax co-ordination under destination and origin principles: a synthesis," Journal of Public Economics, Elsevier, vol. 81(2), pages 279-319, August.

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