Abstract
We study how harmonization of corporate tax systems affects the stability of international cartels. We show that tax base harmonization reinforces collusive agreements, while harmonization of corporate tax rates may destabilize or stabilize cartels. We also find that bilateral and full harmonization to a common standard is worse from society's point of view than unilateral harmonization to a minimum tax standard.
Original language | English |
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Pages (from-to) | 599-621 |
Number of pages | 23 |
Journal | Journal of Public Economic Theory |
Volume | 11 |
Issue number | 4 |
DOIs | |
Publication status | Published - Aug 2009 |
Externally published | Yes |