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matières fiscales internationales

Recherches Économiques de Louvain/ Louvain Economic Review (1)

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Implicit tax co-ordination under repeated policy interactions
Marco Catenaro, Jean-Pierre Vidal
Journal:

Recherches Économiques de Louvain/ Louvain Economic Review / Volume 72 / Issue 1 / 2006

Published online by Cambridge University Press:

17 August 2016, pp. 5-17

Print publication:

2006
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In the context of a stylised game theoretical framework of capital tax competition, we show that when repeated policy interactions are associated to a systematic punishment of the deviating policymaker, a co-ordinated outcome can be the solution to the non co-operative tax game. This result suggests that explicit forms of policy co-ordination, such as a centralised tax authority, could in fact be largely unnecessary.