welfare

Is tax competition harmful and is the EU an Optimal Tax Area?, European Journal of Law and Economics 21: 163-177 (2006, in common with N. Kyriazis)

This paper examines the issue of harmfulness of tax competition commenting on issues like welfare, growth, redistribution, harmonization and individual freedom. A simple game theoretical approach is formulated, where for the first time the two players start from unequal initial conditions, thus influencing strategy and outcomes. Next we propose the new criterion of Optimal Tax Area under which the possibility and feasibility of tax harmonization is examined.

English