N. A. Leonova, G. V. Kolesnik, “Model of tax competition, which takes into account investor mobility constraint”, Vestnik TVGU. Ser. Prikl. Matem. [Herald of Tver State University. Ser. Appl. Math.], 2009, Issue 15,Pages <nobr>63

This article is cited in 1 paper

ECOLOGICAL-ECONOMIC MODELING

Model of tax competition, which takes into account investor mobility constraint

N. A. Leonova^a, G. V. Kolesnik^b

^a SRI Centerprogrammsystem, Tver
^b Tver State University, Tver

Abstract: The paper considers mathematic model of interregional tax competition which takes into account taxpayers mobility constraint. It is shown that when the number of taxpayers is big enough the model allows Nash equilibrium with non-minimal tax rates existence, preventing thereby the race to the bottom.

Keywords: taxation, investment, tax competition, tax privileges, regional economy, oligopoly.

UDC: 519.865.7

Received: 05.10.2009
Revised: 20.11.2009