We show that, in a setting where tax competition promotes efficiency, variation in the extent to which firms can use … public goods to reduce costs brings about a reduction in the intensity of tax competition. This in turn brings about a loss … of efficiency. In this environment, a `minimum tax' counters the reduction in the intensity of tax competition, thereby …

This paper argues that, because governments are able to relax tax competition through public good differentiation …. We show that, in a setting where tax competition promotes efficiency, governments are able to use this variation to relax … the forces of tax competition, which reduces efficiency. In this environment, a `minimum tax' counters the relaxation of …

In a classic model of tax competition, we show that the level of public good provision and taxation in a decentralized …

-reform 1994. Applying Hirschman’s Exit-Voice theory, we construct a game model of interplay between firm and local government, in …

We examine the welfare properties of alternative regimes of interjurisdictional competition for heterogenous mobile … losses from distortionary taxation) when firms are highly mobile. In this situation, further limiting competition by imposing …

model of tax competition in a Nash and Stackelberg game, we use panel data and tools from spatial econometrics to examine … the role of small countries in tax competition within the enlarged European Union. We find that interactions are stronger …

1996-2005. In general, empirical results are in line with the theory. …