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We develop a dynamic spatial general equilibrium model with forward-looking investment and migration decisions. We characterize analytically the transition path of the spatial distribution of economic activity in response to shocks. We apply our framework to the reallocation of US economic...
Persistent link: https://www.econbiz.de/10012599391
Why do some firms adopt certain tax havens and how sensitive is the demand for tax havens? We address these questions by studying how the repeal of Section 936 tax credits affected firms with affiliates in Puerto Rico. We first describe the characteristics of US multinationals that were exposed...
Persistent link: https://www.econbiz.de/10012479472
The standard international tax model is extended to allow for heterogeneous firms when agglomeration forces are …
Persistent link: https://www.econbiz.de/10012463541
The Tiebout model assumes that individuals 'vote with their feet' and choose to locate in the jurisdiction which best matches their fiscal preferences. In this paper, we test Tiebout's voting mechanism by examining whether housing purchase decisions are sensitive to changes in local property tax...
Persistent link: https://www.econbiz.de/10012463854
Employment at multinational enterprises (MNEs) responds to wages at the extensive margin, when an MNE enters a foreign location, and at the intensive margin, when an MNE operates existing affiliates. We present an MNE model and conditions for parametric and nonparametric identification. Prior...
Persistent link: https://www.econbiz.de/10012463871
Conventional hedonic techniques for estimating the value of local amenities rely on the assumption that households move freely among locations. We show that when moving is costly, the variation in housing prices and wages across locations may no longer reflect the value of differences in local...
Persistent link: https://www.econbiz.de/10012466562
. In these models there is an increasing returns effect that favors agglomeration, but also a crowding or market …
Persistent link: https://www.econbiz.de/10012469174
This paper analyzes the effects of the U.S. tax treatment of the R&D activities of American multinationals. Recent evidence indicates that the level of R&D spending is highly sensitive to its after-tax cost. The U.S. Tax Reform Act of 1986 reduced the tax deductions that many American firms can...
Persistent link: https://www.econbiz.de/10012474366
Over the last 30 years, the Chinese government has invested in new industrial parks with the intent of stimulating urban economic growth. The central government delegates the site selection decision to provincial leaders. A principal-agent issue arises because the central government prioritizes...
Persistent link: https://www.econbiz.de/10012453257
We provide the first cross-sectoral description of local consumption markets. Detailed credit card data show consumers have limited mobility and manage the spatial dimension of their transactions. In more frequently purchased sectors, expenditure declines faster with distance; further, the spatial...
Persistent link: https://www.econbiz.de/10012455066