Arbeitspapier
Commodity Taxation and Regulatory Competition
This paper studies theoretically and empirically competition in commodity taxation and product market regulation between trading partner countries. We present a two-country general equilibrium model in which destination-based commodity taxes finance public goods, and product market regulation affects both the number of firms in the market and product diversity. We provide empirical evidence based on data for 21 OECD countries over the 1990-2008 period. Our results suggest that commodity taxation and product market regulation are interdependent policies. We find absence of strategic interaction in commodity taxation between governments. Furthermore, we show that domestic regulation has a negative effect on domestic commodity taxation. Finally, we demonstrate that product market regulation is a strategic complementary policy.
- Language
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Englisch
- Bibliographic citation
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Series: CESifo Working Paper ; No. 6345
- Classification
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Wirtschaft
International Economics: General
Structure and Scope of Government: General
State and Local Government; Intergovernmental Relations: General
International Fiscal Issues; International Public Goods
Regulation and Industrial Policy: General
- Subject
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regulation
commodity tax
strategic interactions
- Event
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Geistige Schöpfung
- (who)
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Moriconi, Simone
Picard, Pierre M.
Zanaj, Skerdilajda
- Event
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Veröffentlichung
- (who)
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Center for Economic Studies and ifo Institute (CESifo)
- (where)
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Munich
- (when)
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2017
- Handle
- Last update
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20.09.2024, 8:21 AM CEST
Data provider
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Object type
- Arbeitspapier
Associated
- Moriconi, Simone
- Picard, Pierre M.
- Zanaj, Skerdilajda
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2017