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Multijurisdictional Economies: Trade and Tax/Amenity Competition


Abstract:

Should the UK lower corporate taxes to keep business and industry in the UK or should it increase the levels of amenities valued by corporations and their employees? Should the European Union harmonise taxation policies, and how far should this co-ordination extend? What policies towards trade blocks and coalitions might best be pursued by the UK? These are a few of the important questions currently on the UK policy agenda. A common element in these questions is that, while in each case a degree of policy co-ordination between national governments is required for the attainment of efficient outcomes, each nation is committed to the pursuit of the wellbeing of its residents. But each nation is constrained by the actions and reactions of other nations. Moreover, the benefits of forming a union with other nations may limit the ability of a nation to shape its own policies.These are all concerns of multijurisdictional economies. Using both empirical and theoretical studies, this research investigates several aspects of multijurisdictional economies and the economics of the UK in its multijurisdictional setting. The major areas of the research are tax and amenity competition, international trade, coalition formation, and the political economy of multijurisdictional economies

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