Risk Diversification and Tax Competition: The Influence of Risk Correlations and Tax Provisions on Tax Competition
From standard-portfolio-models the authors derive demand elasticities for risky assets, and combine the results with a simple non-cooperative model of tax competition between capital importing countries. They find that tax rates resulting from tax competition depend heavily on the correlations of ca...
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2000
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Abstract | From standard-portfolio-models the authors derive demand elasticities for risky assets, and combine the results with a simple non-cooperative model of tax competition between capital importing countries. They find that tax rates resulting from tax competition depend heavily on the correlations of capital market indices. If investment alternatives are not correlated, the outcome of both tax competition and a cooperative solution of tax harmonization are identical. The results suggest regional cooperation among capital importing countries. Compared to the exemption method provisions like tax sparing aggravates the harms of tax competition. Die Autoren leiten aus dem Standard-Portfolio-Modell Nachfrageelastizitäten nach riskanten Anlagealternativen her und bringen diese in ein einfaches nicht-kooperatives spieltheoretisches Modell zum Steuerwettbewerb zwischen kapitalimportierenden Ländern ein. Wie sich zeigt, hängen die vom Steuerwettbewerb hervorgebrachten Steuersätze stark von den Korrelationen der Marktindices ab. Sind diese nicht korreliert, bringt der Steuerwettbewerb das gleiche Ergebnis hervor wie die kooperative Lösung einer Steuerharmonisierung. Die Ergebnisse liefern ferner Argumente für die regionale Kooperation kapitalimportierender Länder. Zudem wird gezeigt, dass die fiktive Anrechnung ausländischer Quellensteuern den Steuerwettbewerb verschärft. |
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AbstractList | From standard-portfolio-models the authors derive demand elasticities for risky assets, and combine the results with a simple non-cooperative model of tax competition between capital importing countries. They find that tax rates resulting from tax competition depend heavily on the correlations of capital market indices. If investment alternatives are not correlated, the outcome of both tax competition and a cooperative solution of tax harmonization are identical. The results suggest regional cooperation among capital importing countries. Compared to the exemption method provisions like tax sparing aggravates the harms of tax competition. Die Autoren leiten aus dem Standard-Portfolio-Modell Nachfrageelastizitäten nach riskanten Anlagealternativen her und bringen diese in ein einfaches nicht-kooperatives spieltheoretisches Modell zum Steuerwettbewerb zwischen kapitalimportierenden Ländern ein. Wie sich zeigt, hängen die vom Steuerwettbewerb hervorgebrachten Steuersätze stark von den Korrelationen der Marktindices ab. Sind diese nicht korreliert, bringt der Steuerwettbewerb das gleiche Ergebnis hervor wie die kooperative Lösung einer Steuerharmonisierung. Die Ergebnisse liefern ferner Argumente für die regionale Kooperation kapitalimportierender Länder. Zudem wird gezeigt, dass die fiktive Anrechnung ausländischer Quellensteuern den Steuerwettbewerb verschärft. |
Author | Berndt, Markus Reichl, Bettina |
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Snippet | From standard-portfolio-models the authors derive demand elasticities for risky assets, and combine the results with a simple non-cooperative model of tax... |
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Title | Risk Diversification and Tax Competition: The Influence of Risk Correlations and Tax Provisions on Tax Competition |
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