Brülhart, Marius; Jametti, Mario; Schmidheiny, Kurt - Department of Economics and Business, Universitat … - 2007
Low corporate taxes can help attract new firms. This is the main mechanism underpinning the standard 'race-to-the-bottom'view of tax competition. A recent theoretical literature has qualified this view by formalizing the argument that agglomeration forces can reduce firms' sensitivity to tax...