Unilateral tax reform under the restricted origin principle

Andreas Haufler

No 142, Discussion Papers, Series II from University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy"

Abstract: We analyze the restricted origin principle for taxing international trade in a three-country, three-commodity model where two of the countries form an economic union. Using simplifying assumptions with respect to the initial tax equilibrium and the structure of preferences, the effects of a Variation in one union country's general com-modity tax rate on relative prices and national welfare in each of the trading nations are derived. It is argued that each of the union countries can increase the domestic tax base at the expense of its union partner by reducing the general commodity tax rate. This suggests that a process of downward tax competition between union members might take place under the restricted origin principle.

Date: 1991
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/101569/1/756477573.pdf (application/pdf)

Related works:
Journal Article: Unilateral tax reform under the restricted origin principle (1994)
Working Paper: Unilateral tax reform under the restricted origin principle (1994)
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:zbw:kondp2:142

Access Statistics for this paper

More papers in Discussion Papers, Series II from University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy" Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().