This paper deals with optimal income taxation under labor outsourcing and FDI. We show how the optimal income tax …

implementing a more progressive labor income tax structure and higher marginal capital income tax rates than it would have done in … the absence of outsourcing. The tax policy response by the government in the country that receives foreign production … noncooperative Nash equilibrium as a reference case, we also consider tax policy cooperation leading to higher welfare. …

This paper concerns public input provision as an instrument for redistribution under international outsourcing by using …