Bulletin n. 1/2015 | ||
June 2015 | ||
Eichner Thomas, Pethig Rüdiger |
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A note on stable and sustainable global tax coordination with Leviathan governments | ||
in European Journal of Political Economy , Volume 37, March 2015 , 2015 , 64-67 | ||
Itaya et al. (2014) study the conditions for sustainability and stability of capital tax coordination in a repeated game model with tax-revenue maximizing governments. One of their major results is that the grand tax coalition is never stable and sustainable. The purpose of this note is to prove that there are conditions under which the grand tax coalition is stable and sustainable in Itaya et al.'s model. | ||