In this paper we view the tax schedule applied to the profits of a Multinational Enterprise (MNE) as the outcome of a sequential bargaining process and show, using modern game theory developments (the "perfect equilibrium" solution concept) that tax holidays will emerge from such a process if a...

This paper considers the distributional consequences of the reform programme in Russia. Although a small fraction of the population have gained under the reforms, average real household per capita income has declined significantly with households at the lower end of the income distribution...