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
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 6345

Classification
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
regulation
commodity tax
strategic interactions

Event
Geistige Schöpfung
(who)
Moriconi, Simone
Picard, Pierre M.
Zanaj, Skerdilajda
Event
Veröffentlichung
(who)
Center for Economic Studies and ifo Institute (CESifo)
(where)
Munich
(when)
2017

Handle
Last update
20.09.2024, 8:21 AM CEST

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Arbeitspapier

Associated

  • Moriconi, Simone
  • Picard, Pierre M.
  • Zanaj, Skerdilajda
  • Center for Economic Studies and ifo Institute (CESifo)

Time of origin

  • 2017

Other Objects (12)