Information Sharing and Tax Competition Among Governments
Philippe Bacchetta () and
Maria Paz Espinosa ()
CEPR Financial Markets Paper from European Science Foundation Network in Financial Markets, c/o C.E.P.R, 77 Bastwick Street, London EC1V 3PZ.
The residence-based principle has been proposed as a second-best measure to the full international coordination of capital tax policies. A basic requirement for this system to work is that tax authorities have full information about the foreign investments of their residents. The degree of information transmission among governments can be considered as a variable used strategically in the same way taxes are, however. We show that under some features of the tax system there will not be any information sharing, while there are institutional arrangements under which governments will transmit partial information for strategic purposes. We also show that full information sharing is not necessarily a Pareto optimum. Our conclusion is that the informational behaviour of governments is crucial and should be taken into account when designing the optimal international tax system.
Keywords: International Tax Competition; Information Sharing; Optimal Monitoring; Exclusivity (search for similar items in EconPapers)
References: Add references at CitEc
Citations View citations in EconPapers (6) Track citations by RSS feed
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Journal Article: Information sharing and tax competition among governments (1995)
Working Paper: Information Sharing and Tax Competition Among Governments (1992)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:cpr:ceprfm:0028
Ordering information: This working paper can be ordered from
The price is 4.00 pounds or 8.00 dollars per paper.
Access Statistics for this paper
More papers in CEPR Financial Markets Paper from European Science Foundation Network in Financial Markets, c/o C.E.P.R, 77 Bastwick Street, London EC1V 3PZ.
Series data maintained by (). This e-mail address is bad, please contact .