Between Tax Competition and Harmonisation. A Survey on Tax Coordination.

This paper gives an overview on the research done in the fields of tax competition, coordination and harmonisation. The survey is divided in two main parts, in the first section we compare the standard tax competition literature that sees tax competition as a bad, to public choice contributions that advocate tax reductions. In the second part we consider theories of endogenous growth, which focus on analysing the taxation question. After introducing the fundamental contributions, we discuss extensions in the line of an open economy, an OLG setting and the transitional dynamics in greater detail. (author's abstract)