Cross-border shopping and the Atkinson–Stiglitz theorem

Sebastian Kessing and Bernhard Koldert ()

International Tax and Public Finance, 2013, vol. 20, issue 4, 618-630

Abstract: We introduce cross-border shopping and indirect tax competition into a model of optimal taxation. The Atkinson–Stiglitz result that indirect taxation cannot improve the efficiency of information-constrained tax-transfer policies, and that indirect taxes should not be differentiated across goods, is shown to hold in this case even if countries are asymmetric. However, if the tax system must contain indirect taxation, differentiated indirect tax rates arise in the equilibrium and restricting differentiated indirect taxation can be welfare-increasing. Copyright Springer Science+Business Media New York 2013

Keywords: Cross-border shopping; Atkinson–Stiglitz theorem; Tax competition; Direct and indirect taxes; H21; F15 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1007/s10797-013-9287-7 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Cross-Border Shopping and the Atkinson-Stiglitz Theorem (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:itaxpf:v:20:y:2013:i:4:p:618-630

Ordering information: This journal article can be ordered from
http://www.springer. ... ce/journal/10797/PS2

DOI: 10.1007/s10797-013-9287-7

Access Statistics for this article

International Tax and Public Finance is currently edited by Ronald B. Davies and Kimberly Scharf

More articles in International Tax and Public Finance from Springer, International Institute of Public Finance Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().