dc.contributor.author | KRAUTHEIM, Sebastian | |
dc.contributor.author | SCHMIDT-EISENLOHR, Tim | |
dc.date.accessioned | 2009-03-17T13:58:22Z | |
dc.date.available | 2009-03-17T13:58:22Z | |
dc.date.issued | 2009 | |
dc.identifier.issn | 1725-6704 | |
dc.identifier.uri | https://hdl.handle.net/1814/10927 | |
dc.description | We 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.abstract | We 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.sponsorship | This work was supported by the Région Ile-de-France. | en |
dc.format.mimetype | application/pdf | |
dc.language.iso | en | en |
dc.publisher | European University Institute | |
dc.relation.ispartofseries | EUI ECO | en |
dc.relation.ispartofseries | 2009/15 | en |
dc.rights | info:eu-repo/semantics/openAccess | |
dc.subject | heterogeneous firms | en |
dc.subject | monopolistic competition | en |
dc.subject | tax competition | en |
dc.subject | tax havens | en |
dc.subject | F23 | en |
dc.subject | H25 | en |
dc.subject | H87 | en |
dc.title | Heterogeneous Firms, `Profit Shifting‘ FDI and International Tax Competition | en |
dc.type | Working Paper | en |
dc.neeo.contributor | KRAUTHEIM|Sebastian|aut| | |
dc.neeo.contributor | SCHMIDT-EISENLOHR|Tim|aut| | |
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