FISCAL COMPETITION ON THE MARKET FOR DIESEL FUEL IN THE EUROPEAN UNION (Gazolaj-jovedekiado verseny az Europai Unioban)

• Authors: Paizs Laszlo
• Languages of publication: HU

Abstracts

EN

The paper assesses spatial competition in diesel taxation among European governments. By adding an extension to the standard model, it is shown that asymmetric competition - small countries undercutting large - implies that small countries respond less strongly to tax changes by their neighbours than large countries do. An estimate is then made of the fiscal reaction functions for national governments, employing a first-difference regression model with a weighting scheme constructed from road-traffic density data at national borders. Data from 16 countries (EU-15 minus Greece plus Norway and Switzerland) between 1978 and 2005 provides evidence that European governments set their diesel tax interdependently, and moreover, that small European countries tend to react less strongly to changes in their competitors' tax rate than large countries do.

Keywords

EN

FEDERALISM AND SECESSION; INTERGOVERNMENTAL RELATIONS; INTERNATIONAL FISCAL ISSUES; INTERNATIONAL PUBLIC GOODS; STATE AND LOCAL GOVERNMENT

Discipline

• ECONOMICS: ECONOMICS

• Publisher: Committee for Economic Sciences of the Hungarian Academy of Sciences
• Journal: Kozgazdasagi Szemle (Economic Review)
• Year: 2009
• Volume: 56
• Issue: 3
• Pages: 216-238
• Document type: ARTICLE

Contributors

author

Paizs Laszlo

• Laszlo Paizs, no address given, contact the journal editor

Identifiers

CEJSH db identifier

10HUAAAA078728