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preferences for redistribution. Second we demonstrate that social-policy does not have to be centralized in order to implement the …
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We set up a simple political economy model where economic integration raises the profitability of multinational firms. In this setting redistributive taxation may rise following economic integration, if the effects of the widened income gap dominate the higher excess burden of the tax.
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Many theoretical models show that redistribution causes low growth or capital outflows even though empirically … redistribution and growth are often found to be positively associated across countries. This paper argues that tax competition and … the danger of capital outflows leads optimizing governments to pursue high growth, no redistribution policies in …
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