In this paper, we pursue several goals; we first check if the downward trend in corporate income tax rates in Europe reflects a strategy of tax competition, and not a "yardstick competition" in neighboring countries. We estimate the scale of fiscal externalities on neighboring countries in terms...

This paper contribtes to the small empirical literature dealing with strategic tax behaviors of small EU countries. We estimate tax reaction functions of national governments competing with each other. Deriving a simple model of tax competition in a Nash and Stackelberg framework, we use panel...

The aim of this paper is to develop a better understanding of the literature dealing with strategic fiscal behaviours of small EU countries using estimations of tax reaction functions of competing national governments. Deriving a simple model of tax competition in a Nash and Stackelberg game, we...

In this paper, we try to understand the economic policies choice of countries in terms of size. According to the case whether a country is large or small, it will have different incentives in the choice of its growth strategy. Theoretically, a large country would prefer use a policy which...

In this paper, we focus on the concept of size of country (or economy). Specifically, within the European Union (EU), we look for growth discrepancies between countries according to their size. We try to explain growth differential using arguments related to the size of countries. Thus, we...

This note investigates the endogenous choice of leadership in commodity tax competition. We apply an endogenous timing game, where jurisdictions commit themselves to lead or to follow, to the Kanbur and Keen (1993) model. We show that the Subgame Pefect Nash Equilibria (SPNE) correspond to the...

In this paper, we extend the stansard approach of horizontal tax competition by endogenizing the timing of decisions made by the competing jurisdictions. Following the literature on the endogenous timing in duopoly games, we consider a pre-play stage, where jurisdictions commit themselves to...

This paper studies the effects of monetary policy rules in a fiscal federation, such as the European Union. The focus of the analysis is the interaction between the fiscal policy of member countries (regions) and the monetary authority. Each of the countries structures its fiscal policy...

Firms devote significant resources to maintain and repair thei existing capital. Within a real business cycle model featuring arguably small aggregate increasing returns, this paper assesses the stabilizing effects of fiscal policies with a maintenance expenditure allowance. In this setup, firms...

We analyze how investment subsidies can affect aggregate volatility and growth in economies subject to capital market imperfections. Within a model featuring both frictions on the credit market and unequal access to investment opportunities among individuals, we provide specific fiscal...