Commodity Taxation and Regulatory Competition

Simone Moriconi, Pierre Picard and Skerdilajda Zanaj

No def034, DISCE - Working Papers del Dipartimento di Economia e Finanza from Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE)

Abstract: TThis paper studies competition in commodity taxation and product market regula- tion between trading partner countries. We present a two-country general equilibrium model in which destination-based commodity taxes finance public goods, and prod- uct market regulation affects both the number of firms in the market and product diversity. We provide empirical evidence based on data for 21 OECD countries over the 1990-2008 period. Our results suggest that commodity taxation and product mar- ket regulation are interdependent policies. Theoretically and empirically we find an absence of strategic interaction in commodity taxation between governments. Further- more, we show that domestic regulation has a negative effect on domestic commodity taxation. Finally, we demonstrate theoretically and show empirically that product market regulation is a strategic complementary 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: 59
Date: 2015-11
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 (21)

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http://dipartimenti.unicatt.it/economia-finanza-def034.pdf First version, 2015 (application/pdf)

Related works:
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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