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Extreme adverse selection arises when private information has unbounded support, and market breakdown occurs when no trade is the only equilibrium outcome. We study extreme adverse selection via the limit behavior of a financial market as the support of private information converges to an...
Persistent link: https://www.econbiz.de/10003461269
We study optimal non-linear contracts offered by two firms competing for the exclusive services of workers, who are privately informed about their ability and motivation. Firms differ in their organizational form, and motivated workers are keen to be hired by the non-profit firm because they...
Persistent link: https://www.econbiz.de/10011703431
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tax competition model in which the residents in one of the two countries do not know their policymaker's type. When … competition, the country's poor economic condition relative to the other country facilitates the emergence of populism. Second …, under tax competition, populism can improve welfare in terms of either the populist country or the whole world, whereas that …
Persistent link: https://www.econbiz.de/10012899544
Our paper extends the capital tax competition literature by incorporating heterogeneous capital and agglomeration. Our … model nests the standard tax competition model as well as the special case in which there is agglomeration but no firm …/capital heterogeneity and the opposite case, firm heterogeneity with no agglomeration. We build on the existing tax competition literature …
Persistent link: https://www.econbiz.de/10011450819
, especially the wage formation process, influence the outcome of interjurisdictional tax competition and coordination. In …
Persistent link: https://www.econbiz.de/10011408608
We study local tax competition when municipalities can voluntarily cooperate. We compare the intensity of …
Persistent link: https://www.econbiz.de/10015065233
This paper develops a model of tax competition with three countries, which initially form a union where countries …
Persistent link: https://www.econbiz.de/10011794033
This paper develops a model of tax competition with three countries, which initially form a union where countries …
Persistent link: https://www.econbiz.de/10011780535