International tax competition and its interaction with the exchange rate coordination

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Project objective

There is a gap in the existing literature concerning the optimal degre of fiscal integration in a monetary union. My research aims to investigate the interaction of capital income tax with the exchange rate policy in a world economy. An important issue in this context is whether the introduction of a common currency in a union requires a coordination of fiscal policies between member countries. In such a world, countries can behave strategically by using both their tax and exchange rate policies in order to attract world resources. To capture this element I will use a game theoretic approach in a general equilibrium framework. This area of research seems very promising, especially now that international considerations have become increasingly relevant in the analysis and formulation of policy.

Original text from CORDIS.

Participants

• University of Essex · COLCHESTERCoordinatorUnited Kingdom
• Not availableCity levelGreece

Links

• View on CORDIS