International tax competition with rising intangible capital and financial globalization

• 成果类型: Article
• 署名作者: Quadrini, Vincenzo; Rios-Rull, Jose-Victor
• 署名单位: Center for Economic & Policy Research (CEPR); National Bureau of Economic Research; University of Southern California; Center for Economic & Policy Research (CEPR); University of Pennsylvania; National Bureau of Economic Research
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2023.10.013
• 发表日期: 2024
• 页码: 101-120
• 关键词: International tax competition; Intangible capital; Financial globalization; Time consistent policies

摘要

The last three decades has witnessed: (a) a rise in the share of intangible capital, and (b) an increase in cross-country ownership of assets (financial globalization). We study the significance of these trends for international tax competition within a two-country model, where governments choose profit and income tax rates without committing to future policies and without international coordination. Higher share of intangible capital has led to lower profit taxes, while increased financial globalization higher profit taxation with the first effect being larger. The combined effects yield a 6% reduction in profit the tax rate and 0.55% gains in welfare (accounting for the transition).