Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
The international agreement on a minimum effective corporate tax rate, implementation of which is imminent, marks a profound change in global tax arrangements. The appropriate level of that minimum, however, has been, and remains, extremely contentious. This paper explores the strategic responses to a minimum tax, which – the policy objective being to change the rules of the tax competition game – are critical for assessing the design and welfare impact of this fundamental policy innovation. Analysis and calibration plausibly suggest sizable scope for minima that are Pareto-improving, benefiting low tax countries as well as high, relative to the uncoordinated equilibrium.