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. Author applies the classical models of oligopoly to subsidy competition, endogenousing investment incentives, but leaving tax … rates exogenous. According to the conventional wisdom, subsidy competition leads to overprovision of incentives. This paper … subsidies. Further, in the setting of subsidy regulation, the host country's corporate income tax rate has an ambiguous effect …
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Dealing constructively with subsidies in global commerce is central to G20 leaders’ goal of reforming and strengthening the multilateral trading system. The growing use of distortive subsidies alters trade and investment flows, detracts from the value of tariff bindings and other market access...
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In this paper, we discuss the endogenous formation of climate coalitions in the tradition of the issue-linkage literature. In particular, we propose a preferential free trade agreement on which a climate coalition should be built. The basic idea is that the benefits of free trade provide strong...
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