We develop and econometrically estimate a model of the location of industries across countries. The model combines factor endowments and geographical considerations, and shows how industry and country characteristics interact to determine the location of production.

Triest (1990) argues that measuring the marginal cost of public funds (MCF) and the marginal excess burden (MEB) requires equivalent variation measures: MCF should be evaluated at consumer prices while MEB requires the use of producer prices. This paper follows up on Triest's argument by showing...

We study the choice of an MNE in deciding whether to establish a branch plant within a region, explicitly taking into account exit, as well as entry, costs. Protecting workers by having stict lay-off rules deters potential investment while subsidies attract it.

Two jurisdictions compete to capture the rents of a large multinational enterprise (MNE) which invests locally and which is partly owned by local investors. The MNE contributes to local welfare by tax payments and dividends and it has private information about the efficiency of the operations in...