This paper analyzes the consequences of international capital mobility for national social-transfer policy and unemployment in a model with workers of different skill and income levels. Social transfers may cause unemployment of low-skilled workers if the transfer level exceeds their potential...

This paper reviews the recent theoretical literature that analyzes the European Union's policy to eliminate preferential corporate-tax regimes and the proposal to introduce a consolidated EU tax base with formula apportionment for the taxation of multinational firms. Since neither proposal...

In this paper we analyze the implications for the national provision of public inputs when profit shifting is possible, albeit costly, for internationally integrated firms. In this case a high level of public infrastructure will attract real investment, but the firm can at least partly avoid to...

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