Colombo, Luca; Labrecciosa, Paola; Walsh, Patrick Paul - Suntory and Toyota International Centres for Economics … - 2006
Theory predicts that optimal effective corporation tax rates will benegatively related to industry specific sunk costs, and hence industryconcentration. Governments should tax industries with monopolistic powersoftly. Evidence suggests that this Schumpeterian (1942) principle ofcorporate...