In a recent review of the literature, Wasylenko (1981) concluded that taxes have very little effect on interregional business location decisions. The present study examines the impact of state taxes and incentive programs on the spatial distribution of inward foreign direct investment in...

We examine a two-jurisdiction tax competition environment where local governments can only imperfectly monitor where agents pay taxes and risk-averse individuals my choose to cross borders to pay lower taxes in a neighboring location. ; In the game between local authorities, when communities...

The paper uses a Hecksher-Ohlin-Samuelson type general equilibrium framework to consider the incidence of an outsourcing tax on an economy in which the production of a specific intermediate input has been fragmented and outsourced. When the input is ?non-traded?, the outsourcing tax can reduce...