This paper demonstrates that under conditions of imperfect (oligopolistic) competition, a transition from separate accounting (SA) to formula apportionment (FA) does not eliminate the problem of profit shifting via transfer pricing. In particular, if affiliates of a multinational firm face...

This paper studies the impact of raiding opportunities in a competitive labor market where firms have complete information about the ability of employed workers but are incompletely informed regarding the ability of the unemployed. In equilibrium, some high-ability workers are involuntarily...

This paper investigates aspects of capital income tax policy in a world economy with many symmetric countries, where production is subject to country-specific productivity shocks. Each country can levy both withholding taxes on income accruing to foreigners and dividend taxes on domestic...

Using a new dataset on imports of technology and total factor productivity (TFP) over more than a century for the OECD countries, this paper tests for international technological transmission through trade. The empirical estimates suggest that imports of knowledge have been responsible for an...

This paper interprets dispute settlement procedures and punishments as responses to the fact that trade agreements are incomplete contracts. If no weight is given to the adjudication phase and if the degree of trade relatedness is known with certainty, the negotiated trade agreement will feature...

In recent years the Nordic countries have introduced a so-called dual income tax which combines a proportional tax on capital income with progressive taxation of labour income. The paper argues that this asymmetric treatment of the two types of income can be defended on pure efficiency grounds,...

The paper extends the standard second best theory of optimal taxation to take into account the existence of differences in administrative costs associated with different tax-transfer systems providing a more realistic framework for the analysis of the trade-offs between equity and efficiency...

This paper investigates whether it is possible to find Pareto-improving commodity tax reforms that harmonise taxes between two countries when governments supply public goods and thus have revenue requirements. It is shown that, with two goods, and starting from Nash equilibrium taxes, any...

This paper establishes in the simplest possible way optimal rules for capital income and profits taxation in the open economy with or without foreign ownership of doemstic firms. We show that if there are constraints on the feasibility of profits taxation, both saving and investment taxes...