DP2556 Commodity Tax Competition and Tax Coordination Under Destination and Origin Principles

Author(s): Ben Lockwood
Publication Date: September 2000
Keyword(s): Destination And Origin Principles, Tax Competition, Tax Reform
JEL(s): H21, H23, H77
Programme Areas: Public Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=2556

This paper proposes a general framework for analysing commodity tax competition under destination and origin principles, based on three possible tax spillovers: the consumer price spillover, the producer price/terms of trade spillover, and rent spillovers. A model is presented which can be extended to accommodate all three spillovers. Using this model, many of the results in the existing literature can be derived, compared, and extended.