Source versus Residence. A comparison from a New Economic Geography perspective

Pasquale Commendatore, Ingrid Kubin

Publication: Working/Discussion PaperWU Working Paper

Abstract

Recently, issues of international taxation have also been analysed from a New Economic Geography perspective. These discussions show that agglomerative forces play a non negligible role. In the paper, we introduce explicitly taxation into a Footloose Capital Model and compare implications of taxation according to the residence principle and the source principle from a New Economic Geography perspective. We confirm that agglomerative effects change the results substantially compared to the standard analysis and that the two taxation principles have different implications for industry agglomeration. (author's abstract)
Original languageEnglish
Place of PublicationVienna
PublisherSFB International Tax Coordination, WU Vienna University of Economics and Business
Publication statusPublished - 2007

Publication series

NameDiscussion Papers SFB International Tax Coordination
No.25

WU Working Paper Series

  • Discussion Papers SFB International Tax Coordination

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