With the completion of the internal market in the EU pressures may arise to diminish social insurance budgets. In a two-country model with an (imperfectly) integrated consumer goods market it is shown that competitive member states use the social insurance tax rate as an instrument to tax...

This paper analyzes a multinational's transfer of technology to a foreign subsidiary for the case where there is a risk of expropriation. An expropriation is assumed to give rise to competition between the parts of the previous multinational enterprise. To reduce the benefit of expropriation,...