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This paper investigates the impacts of capital mobility and tax competition in a setting with imperfect matching between firms and workers. The small country always gains and the large country always loses from tax competition, thus implying tax competition leads to redistribution from the large...
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This paper analyses tax competition and tax coordination in a model where capital flows occur in the form of mergers and acquisitions, rather than greenfield investment. In this framework, we show that differences in residence based taxes do not necessarily distort international ownership...
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Tax competition for mobile capital can undermine the attempts of governments to redistribute income from rich to poor. I study whether international tax coordination can alleviate this problem, using a general equilibrium model synthesizing recent contributions to the tax competition literature....
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taxation, the two approaches - competition and compensation theory - provide diametrically opposed answers to this question …. One theory predicts a reduction in taxation, the other a stagnation or increase in taxation. This paper examines the … countries could be explained by competition theory, the increase in large countries is not in line with the conventional …
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