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Taxing capital and labor when both factors are imperfectly mobile internationally

We revisit the standard theoretical model of tax competition to consider imperfect mobility of both capital and labor. We show that the mobility of one factor affects the taxation of both factors and that the ”race-to-the-bottom” narrative (with burden shifting) applies essentially to capital-export...

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Detalles Bibliográficos
Autores principales: d’Albis, Hippolyte, Bénassy-Quéré, Agnès
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Springer US 2021
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7993084/
https://www.ncbi.nlm.nih.gov/pubmed/33785985
http://dx.doi.org/10.1007/s10797-021-09663-4
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author d’Albis, Hippolyte
Bénassy-Quéré, Agnès
author_facet d’Albis, Hippolyte
Bénassy-Quéré, Agnès
author_sort d’Albis, Hippolyte
collection PubMed
description We revisit the standard theoretical model of tax competition to consider imperfect mobility of both capital and labor. We show that the mobility of one factor affects the taxation of both factors and that the ”race-to-the-bottom” narrative (with burden shifting) applies essentially to capital-exporting countries. We validate our predictions using a panel of 29 OECD countries over the period of 1997–2017. The quantitative contribution of rising capital mobility to the decline of corporate income tax rates over our sample period is nonetheless less than that of population ageing.
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spelling pubmed-79930842021-03-26 Taxing capital and labor when both factors are imperfectly mobile internationally d’Albis, Hippolyte Bénassy-Quéré, Agnès Int Tax Public Financ Article We revisit the standard theoretical model of tax competition to consider imperfect mobility of both capital and labor. We show that the mobility of one factor affects the taxation of both factors and that the ”race-to-the-bottom” narrative (with burden shifting) applies essentially to capital-exporting countries. We validate our predictions using a panel of 29 OECD countries over the period of 1997–2017. The quantitative contribution of rising capital mobility to the decline of corporate income tax rates over our sample period is nonetheless less than that of population ageing. Springer US 2021-03-25 2022 /pmc/articles/PMC7993084/ /pubmed/33785985 http://dx.doi.org/10.1007/s10797-021-09663-4 Text en © The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature 2021 This article is made available via the PMC Open Access Subset for unrestricted research re-use and secondary analysis in any form or by any means with acknowledgement of the original source. These permissions are granted for the duration of the World Health Organization (WHO) declaration of COVID-19 as a global pandemic.
spellingShingle Article
d’Albis, Hippolyte
Bénassy-Quéré, Agnès
Taxing capital and labor when both factors are imperfectly mobile internationally
title Taxing capital and labor when both factors are imperfectly mobile internationally
title_full Taxing capital and labor when both factors are imperfectly mobile internationally
title_fullStr Taxing capital and labor when both factors are imperfectly mobile internationally
title_full_unstemmed Taxing capital and labor when both factors are imperfectly mobile internationally
title_short Taxing capital and labor when both factors are imperfectly mobile internationally
title_sort taxing capital and labor when both factors are imperfectly mobile internationally
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7993084/
https://www.ncbi.nlm.nih.gov/pubmed/33785985
http://dx.doi.org/10.1007/s10797-021-09663-4
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