Discussion Papers 2016
CIRJE-F-1035 | "Does Equalization Transfer Enhance Partial Tax Cooperation?" |
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Author Name | Wang, Wenming, Keisuke Kawachi and Hikaru Ogawa |
Date | December 2016 |
Full Paper | |
Remarks | Subsequently published in International Review of Economics & Finance, Volume 51, 431-443, 2017. |
Abstract |
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This paper analyzes the effect of equalization transfer scheme on partial tax cooperation condition in a repeated game setting. It is shown that in order to achieve partial tax cooperation between two capital-rich (exporting) countries, the full equalization transfer scheme is superior to the partial equalization transfer scheme, whereas in order to achieve partial tax cooperation between two capital-poor (importing) countries, the partial equalization transfer scheme is superior to the full equalization transfer scheme. |
Keywords: Partial tax cooperation, Full equalization transfer, Partial equalization transfer, Repeated game |