This paper explores the role of government policies in a situation where the wage gap between high-skilled and low-skilled workers is widening due to increasing foreign competition in the manufacturing of low-skilled intensive goods. A two-period, two-sector general equilibrium model of a small...

In this paper, we analyse the role of mobility in tax and subsidy competition. Our primary result is that increasing relocation mobility of firms leads to increasing net tax revenues under fairly weak conditions. While enhanced relocation mobility intensifies tax competition, it weakens subsidy...

In this paper, we analyse the role of mobility in tax and subsidy competition. Our primary result is that increasing "relocation" mobility of firms leads to increasing "net" tax revenues under fairly weak conditions. While enhanced relocation mobility intensifies tax competition, it weakens...

We analyse optimal environmental policies in a market that is vertically differentiated in terms of the energy efficiency of products. Considering energy taxes, subsidies to firms for investment in more eco-friendly products, and product standards, we are particularly interested in how...

In this paper, we analyse the role of mobility in tax and subsidy competition. Our primary result is that increasing 'relocation' mobility of firms leads to increasing 'net' tax revenues under fairly weak conditions. While enhanced relocation mobility intensi.es tax competition, it weakens...

In this paper, we analyse the role of mobility in tax and subsidy competition. Our primary result is that increasing 'relocation' mobility of firms leads to increasing 'net' tax revenues under fairly weak conditions. While enhanced relocation mobility intensifies tax competition, it weakens...