International commodity-tax competition and asymmetric producer prices

Yasar, Sezer 2025. International commodity-tax competition and asymmetric producer prices. The B.E. Journal of Economic Analysis & Policy 25 (1) , pp. 59-98. 10.1515/bejeap-2022-0332 Item availability restricted.

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Abstract

In this paper, I extend the seminal commodity-tax competition model of Kanbur and Keen (1993. “Jeux Sans Frontières: Tax Competition and Tax Coordination When Countries Differ in Size.” The American Economic Review 83: 877–92) letting asymmetric producer prices between countries of different sizes. Unlike Kanbur and Keen, I show that there are multiple equilibria, and at some equilibria, small-country consumers cross-shop from the large. Besides, tax harmonization can benefit the small country, and a minimum tax rate can decrease a country’s tax revenue.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Schools > Business (Including Economics)
Subjects:	H Social Sciences > HB Economic Theory
Publisher:	De Gruyter
ISSN:	1935-1682
Date of First Compliant Deposit:	16 January 2025
Date of Acceptance:	30 December 2024
Last Modified:	12 Mar 2025 14:15
URI:	https://orca.cardiff.ac.uk/id/eprint/175205

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