This paper shows that subsidy competition may be efficiency enhancing. We model a subsidy game among two asymmetric … subsidy competition, starting from an equilibrium where the industry core is inefficiently locked in to the smaller region …

The paper provides an equilibrium analysis of how countries compete for migrants. The type of competition (tax or … transfer competition) depends on whether the competing countries have similar policy preferences. With symmetric preferences …, countries compete in taxes for migrants. With asymmetric preferences, migration competition takes place in income support levels …