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Did the single market cause competition in excise taxes?:evidence from EU countries

Lockwood, B and Migali, G (2009) Did the single market cause competition in excise taxes?:evidence from EU countries. Economic Journal, 119 (536). pp. 406-429. ISSN 0013-0133

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    Abstract

    Tax competition theory predicts that the introduction of the EU Single Market in 1993 should have caused excise tax competition and thus increased strategic interaction in the setting of excise taxes among EU countries. We test this prediction using a panel data set of 12 EU countries over the period 1987–2004. We find that for excise duties on still and sparkling wine, beer and ethyl alcohol, strategic interaction significantly increased after 1993. There is weaker evidence of increased interaction in cigarette taxes, possibly because cigarettes are widely smuggled, giving rise to tax competition even before the Single Market.

    Item Type: Article
    Journal or Publication Title: Economic Journal
    Subjects:
    Departments: Lancaster University Management School > Economics
    ID Code: 45146
    Deposited By: ep_importer_pure
    Deposited On: 11 Jul 2011 19:27
    Refereed?: Yes
    Published?: Published
    Last Modified: 09 Apr 2014 22:29
    Identification Number:
    URI: http://eprints.lancs.ac.uk/id/eprint/45146

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