Closer international integration is putting increasing pressure on existing national tax structures. This paper uses a simple two-country model to address a range of consequent policy concerns, focusing particularly on the role of country size. Differences in size exacerbate the inefficiency...

This paper analyzes Pareto-efficient international tax regimes. Because every country faces its own national budget constraint, the Diamond-Mirrlees production-efficiency theorem, which underlies key tenets of policy advice in international taxation - the desirability of destination basis for...