Economics at your fingertips  

Indirect Tax Distortions in a Europe of Shopkeepers

John Fitzgerald (), Justin Johnston and James Williams
Additional contact information
Justin Johnston: Economic and Social Research Institute (ESRI)
James Williams: Economic and Social Research Institute (ESRI)

No WP056, Papers from Economic and Social Research Institute (ESRI)

Abstract: The changed circumstances of the EU after 1992 have a given rise to concern about possible indirect tax competition and related economic distortions. This paper develops a model, incorporating both a production and a retail sector, to examine the effects of different VAT regimes. This model is applied to data on consumer behaviour in the proximity of the Ireland-UK and the Denmark-German borders showing that the potential size of ?border? areas, where distortion may be expected, is relatively small. The paper suggests that there are very limited incentives for governments to act strategically in choosing their indirect tax rates.

Keywords: VAT regimes; Indirect Tax Distortions; Cross-Border Shopping; Tax Competition (search for similar items in EconPapers)
Date: 1995-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20) Track citations by RSS feed

Downloads: (external link) First version, 1995 (application/pdf)

Related works:
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:

Access Statistics for this paper

More papers in Papers from Economic and Social Research Institute (ESRI) Contact information at EDIRC.
Bibliographic data for series maintained by Sarah Burns ().

Page updated 2019-07-22
Handle: RePEc:esr:wpaper:wp056