Based on a data set for 19 OECD countries for the period 1981 2001, we estimate the impact of FDI on corporate tax rates, where changes in FDI are a measure for changes in capital mobility. So far the literature has been concerned with the related but rather different question as to the...

In response to mounting international pressure to reform the ring-fenced elements of its tax system, the Swiss government has put forward a comprehensive tax reform package. The proposal comprises the introduction of a license box, a substantial reduction in cantonal pro t tax rates, and an...

Standard tax competition models predict a ‘race-to-the-bottom' of corporate tax rates when firms are mobile. Recent theoretical literature has qualified this view by offering a theoretical explanation why this extreme prediction need not occur: central regions with large clusters of economic...