Scandinavian Working Papers in Economics
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Department of Economics, Copenhagen Business School Working Paper Series, Department of Economics, Copenhagen Business School

No 17-2000:

Morten Hvidt and Søren Bo Nielsen

Abstract: This paper demonstrates, within a simple two-country model of commodity taxation and cross-border shopping, that the tax revenue (welfare) effects of a minimum tax requirement depend crucially on the character of the initial noncooperative tax equilibrium, i.e. whether it is Nash or Stackelberg.

Keywords: Commodity tax; Minimum rate; (follow links to similar papers)

JEL-Codes: F15; H87; (follow links to similar papers)

16 pages, October 9, 2000

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