Further analysis on leadership in tax competition: the role of capital ownership—a comment

Hubert Kempf () and Grégoire Rota-Graziosi ()
Additional contact information
Grégoire Rota-Graziosi: CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique, Fiscal affairs department - FMI - Fonds Monétaire International - FMI
Authors registered in the RePEc Author Service: Grégoire ROTA GRAZIOSI

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: Ogawa (Int Tax Public Financ 20(3):474–484, 2013) discusses the analysis of Kempf and Rota-Graziosi (J Public Econ 94(9–10):768–776, 2010a) by taking into account capital ownership in the government's objective functions. He establishes that the unique subgame perfect Nash equilibrium (SPNE) of the endogenous timing game corresponds to the simultaneous Nash equilibrium. This result contrasts with Kempf and Rota-Graziosi (J Public Econ 94(9–10):768–776, 2010a) who conclude to the existence of two Stackelberg outcomes at the SPNEs. Highlighting the role of plain complementarity or substitutability, we obtain conditions under which leadership still emerges at the equilibrium of the endogenous timing game when capital ownership is considered. Numerical simulations confirm this finding and display a case where plain properties are not monotone and a well-identified Stackelberg outcome is the SPNE.

Keywords: Endogenous timing; Tax competition; First/second-mover advantage; Plain complements/substitutes; Stackelberg (search for similar items in EconPapers)
Date: 2015-12
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Published in International Tax and Public Finance, 2015, 22 (6), pp.1028-1039. ⟨10.1007/s10797-014-9339-7⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Further analysis on leadership in tax competition: the role of capital ownership—a comment (2015)
Working Paper: Further analysis on leadership in tax competition: the role of capital ownership—a comment (2015)
Working Paper: Further analysis on leadership in tax competition: the role of capital ownership—a comment (2015)
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:hal:cesptp:hal-01306033

DOI: 10.1007/s10797-014-9339-7

Access Statistics for this paper

More papers in Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL
Bibliographic data for series maintained by CCSD ().