Overview

A critical examination of the effects of tax competition. Policy Responses to Tax Competition provides an in-depth exploration of how jurisdictions design taxes on mobile economic factors. Tax competition between jurisdictions that seek to attract businesses and residents presents both opportunities and challenges. It can foster government efficiency and provide a counterweight to lobbying for increased spending, but it can also result in inefficiently low tax rates and revenue shortfalls as jurisdictions vie for tax bases. This volume examines the economic drivers and consequences of tax competition and presents empirical evidence on its effects. Divided into three parts, the book first reviews existing research on the determinants and consequences of tax competition and related policy initiatives such as development incentives. The second section focuses on specific policies, such as the Kansas-Missouri noncompete pact and international measures like the OECD's Base Erosion and Profit Shifting initiative, that are designed to limit tax competition. It also considers the economic responses to these policies, the distributional impact of competition-reducing policies, and potential strategic reactions of other governments. The final section presents case studies of the effects of various policies, including inter-municipal cooperation in France and corporate tax equalization in Switzerland. Altogether, this volume provides new insights into the nature of inter-jurisdictional tax competition and the range of potential responses available to jurisdictions at various levels in federal systems.

Full Product Details

Author:   David R. Agrawal ,  James M. Poterba ,  Owen M. Zidar
Publisher:   The University of Chicago Press
Imprint:   University of Chicago Press
Dimensions:   Width: 15.20cm , Height: 4.30cm , Length: 22.90cm
Weight:   0.794kg
ISBN:  

9780226838595

ISBN 10:   0226838595
Pages:   536
Publication Date:   29 October 2025
Audience:   Professional and scholarly ,  College/higher education ,  Professional & Vocational ,  Postgraduate, Research & Scholarly
Format:   Hardback
Publisher's Status:   Active
Availability:   Awaiting stock  
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Table of Contents

Introduction    David R. Agrawal, James M. Poterba, and Owen M. Zidar 1. Open Economy Public Finance: Competition Among Governments    David E. Wildasin 2. Subsidy Competition as an Auction    Cailin Slattery 3. Limits to Competition: Strategies for Promoting Jurisdictional Cooperation    David R. Agrawal 4. Wayfair: A Step Toward the Destination, but Sales Tax Competition Remains    Donald Bruce, William F. Fox, and Alannah M. Shute Comment: Alan J. Auerbach 5. Interjurisdictional Competition and Coordination: Evidence from Kansas City    Donghyuk Kim Comment: Cailin Slattery 6. Fiscal Federalism and the Role of the Income Tax    Roger Gordon Comment: James R. Hines Jr. 7. Intergovernmental Grants and Policy Competition: Concepts, Institutions, and Evidence    Jeffrey Clemens and Stan Veuger Comment: Brian Knight 8. Intermunicipal Cooperation in France and Related Tax Issues    Marie-Laure Breuillé and Pascale Duran-Vigneron Comment: Stefanie Stantcheva 9. Minimum Tax Rates and Tax Competition: Evidence from Property Tax Limits in Finland    Teemu Lyytikäinen Comment: Leah Brooks 10. Competition, Harmonization, and Redistribution: Corporate Taxes in Switzerland    Marius Brülhart, Marko Köthenbürger, Matthias Krapf, Raphaël Parchet, Kurt Schmidheiny, and David Staubli Comment: Jan K. Brueckner Author Index Subject Index

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Author Information

David R. Agrawal is professor of economics and professor of law at the University of California, Irvine. James M. Poterba is the Mitsui Professor of Economics at MIT and president and CEO of the NBER. Owen M. Zidar is professor of economics and public affairs at Princeton University and a research associate of the NBER.

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