Skip to Main content Skip to Navigation
Preprints, Working Papers, ...

Taxing capital and labor when both factors are imperfectly mobile internationally

Abstract : 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 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.
Document type :
Preprints, Working Papers, ...
Complete list of metadata

https://halshs.archives-ouvertes.fr/halshs-03134050
Contributor : Caroline Bauer <>
Submitted on : Monday, February 8, 2021 - 9:03:18 AM
Last modification on : Wednesday, February 10, 2021 - 4:08:23 PM
Long-term archiving on: : Sunday, May 9, 2021 - 6:16:03 PM

File

WP_202108_.pdf
Files produced by the author(s)

Identifiers

  • HAL Id : halshs-03134050, version 1

Collections

Citation

Agnès Bénassy-Quéré, Hippolyte d'Albis. Taxing capital and labor when both factors are imperfectly mobile internationally. 2021. ⟨halshs-03134050⟩

Share

Metrics

Record views

152

Files downloads

142