From the founding days to date, the EU constitution does not explicitly empower the Union to formulate policy in the field of direct taxes; this area has been broadly left to the Member States. To date, limited EU-level intervention witnessed in direct taxes can, in part, be attributed to this...

We adopt the framework of Schumpeterian creative destruction formalized by Aghion et al. (2009) to analyze the impact of foreign entry on the productivity growth of domestic firms. In the face of foreign entry, domestic firms exhibit heterogeneous patterns of growth depending on their...

We show that creditors do not just ensure that inefficient investment is not undertaken, but also do not preclude efficient investment. Examining what happens following a debt covenant violation, a situation through which creditors acquire some control rights over the firm, we find that...