Han, Yutao; Pieretti, Patrice; Zanaj, Skerdilajda; Zou, … - In: Journal of Public Economics 119 (2014) C, pp. 71-79
This paper analyzes the impact of foreign investments on a small country's economy in the context of international competition. To that end, we model tax and public input competition within a differential game framework between two unequally sized countries. The model accounts for the widely...