The European Commission has announced comprehensive reform of European control of state financial aids. In its State Aid Action Plan (SAAP), published in November 2005, it states that the main aim of this reform is to apply a more economic approach. This paper is a translated version of chapter...

Our objective is to establish a new framework for quantifying the welfare effects of fiscal policies in an open economy, with an emphasis on state and local governments in a federal system. To do this, we develop a model of fiscal policy with benefit-spillovers, firm/household mobility,...

En este artículo se consignan algunas ideas relacionadas con los efectos del monopolio sobre el funcionamiento de la economía, y la impresión que existe dentro de la mayoría de los profesionales de la economía sobre la magnitud de este problema y los intentos de limitarlo mediante...

This paper assesses the importance of taxation on foreign direct investment contributing to the literature in two ways. First, it relates bilateral FDI among OECD countries over the 1990s to a new set of estimates of corporate tax wedges that include many relevant aspects of FDI taxation....

Despite an international consensus on the importance to limit State aid spending, large amounts of resources are still devoted to a wide variety of subsidies to firms. A sizable literature studies the relationship between general government spending and the proximity of elections, mostly...

Weak productivity in Egypt is rooted in deep-seated structural causes that impede market competition and prevent a more efficient resource allocation. This implies a number of challenges for economic policy to meet the objectives for long-term sustainable growth as set out in the National...

This paper studies the impact of a government's efficiency on the taxation policy of a state. Namely, we claim that the countries are different both in the way they tax capital and the way they spend the collected revenue. We build a model of 2 countries competing for foreign investment,...

This paper investigates whether transfer pricing of intrafirm sales within multinationals represents an important channel of company tax planning. A simple theoretical model, considering profit shifting activities of a multinational company, is used to obtain empirical implications. The...

Economic agents who face the diversity of tax systems demand condensed but sophisticated information on effective tax burdens. We analyse common features and differences between important forward-looking concepts of measuring effective tax rates in business management and economics and develop...

This paper investigates whether the size of multinationals? real investments in a high-tax country is affected by profit shifting activities. A simple theoretical analysis shows that tax rates abroad impact the cost of capital in the presence of profit shifting activities of multinational...