We analyze the relocation decision of a monopolist under various assumptions with respect to the difference in environmental policy stringency between the home and foreign country. We show that relocation because of such a difference is highly unlikely in a model that includes uncertainty with...

This paper analyzes the impact of countries' tax attractiveness on the allocation of risk within multinational groups. Our dataset contains subsidiaries located in 32 European countries and owned by parents from 90 different countries globally. We show that tax symmetry positively influences the...