In a globalised world economy where capital is highly mobile governments are eager to attract foreign investors by lowering their corporate tax rates. EU countries have been particularly active in this respect given that capital can move freely across EU member states' borders thanks to reforms...

The paper presents a new calibration for CORTAX (short for CORporate TAXation), which is a computable general equilibrium (CGE) model covering all EU member states, the US, Japan and a tax haven. The CORTAX model was originally built by the Centraal Planbureau (CPB) in the Netherlands based on...