In this paper, we analyse the role of mobility in tax and subsidy competition. Our primary result is that increasing … mobility intensifies tax competition, it weakens subsidy competition. The resulting fall in the governments' subsidy payments … in which two governments are first engaged in subsidy competition and thereafter in tax competition, and firms locate and …

outflow to other countries. When the green subsidy is available, countries choose a positive subsidy rate since this reduces … the overall distortion of the tax-subsidy system. In doing so, each country internalizes a larger part of the …. Hence, the subsidy is not only beneficial for the country which imposes it but for all countries …

framework that emphasizes commitment. We build a model where the policy-maker has a tariff and a production subsidy at its … the policy substitution problem. Finally, we employ the theory to analyze the Subsidies and Countervailing Measures (SCM …

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 …. When regions weigh workers' and capitalists' welfare equally, the core region will set its subsidy low enough that the …