Levaggi, Rosella; Panteghini, Paolo - 2018
This article provides a possible explanation for the heterogeneity of tax reaction functions under tax competition. In … implications in that they explain the lack of tax convergence among jurisdictions. In particular, if at least some tax reaction … functions have a negative slope, there are no symmetric equilibria, and the well-known tax-cut-cum-base-base-broadening policy …