Economic integration and redistribuitive taxation

Haufler, Andreas; Klemm, Alexander and Schejederup, Guttorm (April 2006): Economic integration and redistribuitive taxation. Discussion Papers in Economics 2006-16

Abstract

We set up a simple political economy model where economic integration raises the profitability of multinational firms. In this setting redistributive taxation may rise following economic integration, if the effects of the widened income gap dominate the higher excess burden of the tax.

• Item Type: Paper
• Keywords: redistributive taxation, profit shifting
• Faculties: Economics; Economics > Munich Discussion Papers in Economics; Economics > Munich Discussion Papers in Economics > International Trade; Economics > Munich Discussion Papers in Economics > Public Choice; Economics > Chairs > Seminar for Economic Policy
• Subjects: 300 Social sciences > 300 Social sciences, sociology and anthropology; 300 Social sciences > 330 Economics
• JEL Classification: H20, F23
• Language: English