Lobbying and the international fight against tax havens

Tobias Hauck

Munich Reprints in Economics from University of Munich, Department of Economics

Abstract: Despite a variety of measures taken by high-tax countries, the international fight against tax havens so far remains rather ineffective. This paper introduces offshore lobbying as a possible explanation for this observation. The author analyzes the international fight against tax havens in a two-country model, in which the onshore country exerts pressure on domestic profit-shifting firms and the tax haven's government lobbies against this measure. In this framework, he finds that pressure and lobbying are strategic substitutes and that there is an extensive margin incentive for offshore lobbying. Furthermore, when starting at initially high costs for profit shifting, a reduction in these costs leads to fewer profit-shifting firms. Finally, when allowing for a second low-tax jurisdiction, the overall level of lobbying increases, but less than proportionally.

Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Published in Journal of Public Economic Theory 3 21(2019): pp. 537-557

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

Related works:
Journal Article: Lobbying and the international fight against tax havens (2019)
Working Paper: Lobbying and the International Fight Against Tax Havens (2018)
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:lmu:muenar:78287

Access Statistics for this paper

More papers in Munich Reprints in Economics from University of Munich, Department of Economics Ludwigstr. 28, 80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Tamilla Benkelberg ().