Tax incidence , majority voting and capital market integration

  title={Tax incidence , majority voting and capital market integration},
  author={Ben Lockwood and M. Makris},
We re-examine, from a political economy perspective, the standard view that higher capital mobility results in lower capital taxes — a view, in fact, that is not confirmed by the available empirical evidence. We show that when a small economy is opened to capital mobility, the change of incidence of a tax on capital–from capital owners to owners of the immobile factor–may interact in such a way with political decision-making so as to cause a rise in the equilibrium tax. This can happen whether… CONTINUE READING

From This Paper

Figures, tables, and topics from this paper.


Publications referenced by this paper.
Showing 1-10 of 12 references

Does federalism lead to excessively high taxes

  • M. J. 149–165. Keen, C. Kotsogiannis
  • American Economic Review
  • 2002
Highly Influential
4 Excerpts

Political Economics: Explaining Economic Policy

  • T. Persson, G. Tabellini
  • American Political Science Review
  • 2000
Highly Influential
7 Excerpts

Exchange Controls and Corporate Taxes in the OECD

  • M. P. Devereux, B. Lockwood, M. Redoano
  • Journal of Urban Economics
  • 2003
2 Excerpts

Redistribution, fiscal competition, and the politics

  • A. S. 363–370. Kessler, C. Lulfesmannm, G. M. Myers
  • 2002
2 Excerpts

Globalisation and Electoral Accountability

  • T. Besley, M. Smart
  • 2001
2 Excerpts

Fiscal Coordination and Political Competition

  • L. 1086–1102. Grazzini, T. van Ypersele
  • 1999

Partisan Politics in the Global Economy

  • G. 8–27. Garrett
  • American Economic Review
  • 1998
1 Excerpt

Has Globalization Gone too Far? Institute for International Economics, Washington D.C

  • D. Rodrik
  • 1997
1 Excerpt

Similar Papers

Loading similar papers…