ISSN:
1573-6970
Keywords:
value-added tax
;
destination and origin principle
;
mobile households and firms
;
efficiency analysis
;
equivalence statements
Source:
Springer Online Journal Archives 1860-2000
Topics:
Economics
Notes:
Abstract The usual arguments pro destination-based, consumption-oriented or pro origin-based, production-oriented VAT are found wanting. They largely ignore tax effects on locational choices of firms. This paper provides a comparison of consumption and production taxation within a model of firm and household mobility. It is shown that the case for consumption taxation becomes stronger when profit taxes are not available. The consumption tax is the more targeted instrument when households are to be induced to locate efficiently. It is argued that, with border controls lacking, the alternative option should be seen more in a wage tax and less in a production tax.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1023/A:1008702012307
Permalink