stylized facts by setting up a simple two-country model of tax competition with heterogenous firms. In this model a unique … simultaneous expansion of both markets intensifies tax competition and causes both countries to reduce their tax rates, despite …

settle where taxes are lowest, government are forced "in the splits" (double Bertrand-type tax competition). We assume that … (distorted) labour market and the fiscal game takes the form of competition among strategic intermediaries. Results from the … theory of intermediation are applied to this framework, enabling us to explain why government size may increase rather than …