Commodity taxation and regulatory competition

Simone Moriconi, Pierre Picard and Skerdilajda Zanaj

No 2015/26, Working Papers from Institut d'Economia de Barcelona (IEB)

Abstract: This paper studies competition in commodity taxation and product market regulation between trading partners. To explain the strategic interaction between governments and regulators, we present a two-country general equilibrium model in which destination-based commodity taxes finance public goods and product market regulation affects the number of firms in the market. 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 confirm the absence of strategic interaction in commodity taxation between governments. Finally, we show that domestic regulation has a negative effect on domestic commodity taxation and that product market regulation is a strategic complement policy.

Keywords: Regulation; commodity tax; strategic interactions (search for similar items in EconPapers)
JEL-codes: F0 H1 H7 H87 L5 (search for similar items in EconPapers)
Pages: 74 pages
Date: 2015
New Economics Papers: this item is included in nep-pbe, nep-pub and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

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Journal Article: Commodity taxation and regulatory competition (2019)
Working Paper: Commodity taxation and regulatory competition (2019)
Working Paper: Commodity taxation and regulatory competition (2018)
Working Paper: Commodity Taxation and Regulatory Competition (2017)
Working Paper: Commodity Taxation and Regulatory Competition (2015)
Working Paper: Commodity taxation and regulatory competition (2012)
Working Paper: Commodity taxation and regulatory competition (2012)
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