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This paper shows that labor market institutions are important for the formation of new enterprises. The effects of labor market institutions on entrepreneurship, wage determination, and firm size are analysed analytically and illustrated numerically. The main result is that an increase in union...
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Can multinational firms exert more power than national firms by influencing politics through lobbying? To answer this … question, we analyze the extent of national environmental regulation when policy is determined in a lobbying game between a … multinational; this changes for high transportation costs and intermediate damage parameters. When there is no lobbying, welfare …
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This paper analyzes the impact of countries' tax attractiveness on the allocation of risk within multinational groups. Our dataset contains subsidiaries located in 32 European countries and owned by parents from 90 different countries globally. We show that tax symmetry positively influences the...
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