Working Paper: CEPR ID: DP2556
Authors: Ben Lockwood
Abstract: This paper proposes a general framework for analysing commodity tax competition under destination and origin principles, based on three possible tax spillovers: the consumer price spillover, the producer price/terms of trade spillover, and rent spillovers. A model is presented which can be extended to accommodate all three spillovers. Using this model, many of the results in the existing literature can be derived, compared, and extended.
Keywords: destination and origin principles; tax competition; tax reform
JEL Codes: H21; H23; H77
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| foreign commodity tax changes (F19) | domestic consumer prices (D19) |
| foreign commodity tax changes (F19) | domestic producer prices (P22) |
| foreign commodity tax changes (F19) | domestic profit rents (D33) |