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dc.contributor.authorKRAUTHEIM, Sebastian
dc.contributor.authorSCHMIDT-EISENLOHR, Tim
dc.date.accessioned2009-03-17T13:58:22Z
dc.date.available2009-03-17T13:58:22Z
dc.date.issued2009
dc.identifier.issn1725-6704
dc.identifier.urihttp://hdl.handle.net/1814/10927
dc.descriptionWe are grateful to Giancarlo Corsetti, Omar Licandro and Morten Ravn for constant advice. We would also like to thank Jonathan Eaton, Vincent Rebeyrol, Karolina Ekholm, guest researchers at the Deutsche Bundesbank, participants at the EUI Macro Group and the PSE International Trade lunchtime seminar for fruitful discussions and comments.en
dc.description.abstractWe develop a stylized model of international tax competition between a large country and a tax haven. In the large country, firms in a monopolistically competitive industry generate positive profits which can be taxed by the government. Firms have heterogeneous productivity levels and can choose to undertake ‘profit shifting’ FDI in order to benefit from lower tax rates abroad. We find that economies with a low degree of firm heterogeneity and a high degree of monopolistic market power are less affected by international tax competition. They face lower outflows of the tax base and can set higher tax rates.en
dc.description.sponsorshipThis work was supported by the Région Ile-de-France.en
dc.format.mimetypeapplication/pdf
dc.language.isoenen
dc.publisherEuropean University Institute
dc.relation.ispartofseriesEUI ECOen
dc.relation.ispartofseries2009/15en
dc.rightsinfo:eu-repo/semantics/openAccess
dc.subjectheterogeneous firmsen
dc.subjectmonopolistic competitionen
dc.subjecttax competitionen
dc.subjecttax havensen
dc.subjectF23en
dc.subjectH25en
dc.subjectH87en
dc.titleHeterogeneous Firms, `Profit Shifting‘ FDI and International Tax Competitionen
dc.typeWorking Paperen
dc.neeo.contributorKRAUTHEIM|Sebastian|aut|
dc.neeo.contributorSCHMIDT-EISENLOHR|Tim|aut|
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