Langenmayr, Dominika; Haufler, Andreas; Bauer, Christian J. - 2012
Heterogeneous firm productivity seems to provide an argument for governments to pursue `pick-the-winner' strategies by …, favoring high-productivity firms is indeed the optimal policy. When tax competition is aggressive and profit taxes are low …, however, the optimal tax policy is reversed and low-productivity firms are tax-favored. …