Strategic delegation in asymmetric tax competition |
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| Authors: | Hikaru Ogawa Taiki Susa |
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| Institution: | 1. Graduate School of Economics and Graduate School of Public Policy, The University of Tokyo, Tokyo, Japan;2. College of Business Administration and Information Science, Chubu University, Kasugai‐shi, Aichi, Japan |
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| Abstract: | This study examines asymmetric tax competition under representative democracy systems. The findings show that the degree of asymmetry between countries affects the result of elections in each country, where the citizens select a policy‐maker to set a tax rate for the country. In particular, under certain conditions, a decisive voter in the election can select a citizen whose share of the country's capital is higher than the decisive voter's own share. |
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| Keywords: | strategic delegation tax competition terms of trade |
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