The paper uses a calibrated general equilibrium model to quantify the welfare impact of trade liberalization and compute the optimal tariff structure for Costa Rica when trade policy induced foreign direct investment and international capital taxation with credits are present. It shows that...

This paper examines how capital tax competition affects jurisdiction formation. We describe a locational model of public goods provision, where jurisdictions are represented by coalitions of consumers with similar tastes, and where the levels of taxation and local public goods provision within...