Commodity taxation and regulatory competition

Simone Moriconi, Pierre Picard and Skerdilajda Zanaj

DEM Discussion Paper Series from Department of Economics at the University of Luxembourg

Abstract: This paper studies competition in regulation and commodity taxation between trading countries. We present a general equilibrium model in which destination based consumption taxes finance public goods, while regulation of entry determines the number of firms in the markets. We find (i) no strategic interaction in commodity taxes; (ii) regulation leads to lower commodity tax rates if demand for public goods is more sensitive to income than demand for private goods and (iii) regulation policy is a strategically complement instrument if consumers do not over value product diversity. In the empirical part of the paper, we test our predictions using panel data for 21 OECD countries over the period 1990-2008.

Keywords: Regulation; commodity tax; strategic interactions; fiscal federalism (search for similar items in EconPapers)
JEL-codes: F0 H1 H7 H87 L5 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-pbe and nep-reg
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Citations: View citations in EconPapers (2)

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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 (2015)
Working Paper: Commodity taxation and regulatory competition (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:luc:wpaper:12-15

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