Competition in Corporate and Personal Income Tax:Evidence from 67 Developed and Developing Countries

• 발행기관: 한국재정학회(구 한국재정·공공경제학회)
• 저자명: Young Lee
• 간행물 정보: 『한국재정학회 학술대회 논문집』2017년도 추계학술대회 논문집, 1~37쪽, 전체 37쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2017.09.30

영문 초록

The paper empirically investigates tax competition in corporate income taxes (CIT) and personal income taxes (PIT) in 67 countries between 1981 and 2015. A large sample with more variations allows us to find tax competition in corporate income taxes (CIT) even after controlling for country dummies, year dummies, and country-specific trends. We find tax competition in PIT is much weaker than that in CIT and various domestic considerations appear to work more strongly in determining PIT. We also find that tax competition is a key determinant in setting CIT in developing countries as well as in developed countries. In addition to estimating response function, we explore the possibility of adjustment cost and rigidity by estimating error correction model (ECM) and pooled mean group estimation (PMG). ECM and PMG estimations provide evidence for a partial adjustment instead of an instant full adjustment of tax rates. We also find evidence that countries tend to adjust more strongly when lowering rates than they do when raising rates, which is like the kinked demand curve model in spirit.

목차

1. Introduction

2. Literature Review

3. Specification, data, and sample

4. Simple Analysis

5. Regression Results

6. Summary and Discussion

키워드

Tax Competition Corporate Income Taxes Personal Income Taxes Pooled Mean Group Kinked Demand Curve