production to the other. In the country whose firms outsource production abroad, the government will respond to outsourcing by … the absence of outsourcing. The tax policy response by the government in the country that receives foreign production …

This paper deals with optimal income taxation under international outsourcing and FDI. We show how the joint effect of … outsourcing and FDI on the optimal marginal income tax rates depends on whether FDI is horizontal or vertical. …

This paper concerns public input provision as an instrument for redistribution under international outsourcing by using … the provision of public input goods in response to international outsourcing, and (ii) whether international outsourcing … justifies policy cooperation. If the public input good is substitutable for (complementary with) outsourcing in terms of the …

outsourcing by locating part of the production process abroad. Our results show that the incentive to relax the self … outsourcing. Without a direct instrument for taxing outsourcing, the government may reduce the amount of resources spent on … outsourcing by increased provision of the public input good, which is desirable in the sense that reduced outsourcing contributes …

This paper addresses outsourcing in the two-type optimal income tax model. If the government is able to control … outsourcing via a direct tax instrument, outsourcing will not affect the marginal income tax structure. In the absence of a direct … tax instrument, and under the plausible assumption that higher outsourcing increases the wage differential, the government …