Pieretti, Patrice; Thisse, Jacques-François; Zanaj, … - Centre de Recherche en Économie Appliquée (CREA), … - 2013
This paper explains why and how a small country can be an offshore financial center (OFC). We build a model involving a small and a large country competing for portfolio investments. They use two instruments, taxation and institutional infrastructure. We identify the conditions for an OFC to be...