Kind, H.J.; Knarvik, K.H.M.; Schjelderup, G. - Norges Handelshøyskole (NHH) - 1999
This paper uses a new economic geography model to analyze tax competition between two countries trying to attract internationally mobile capital. Each government may levy a source tax on capital and a lump sum tax on fixed labor. If industry is concentrated in one of the countries, the analysis...