Fiscal competition for FDI when bidding is costly
We introduce bidding costs into a standard model of tax/subsidy competition between two potential host countries to attract the plant of a monopoly firm. Such a bidding cost, even if it is infinitesimal, qualitatively alters the resulting equilibrium. At most one country offers fiscal inducements to...
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| Main Authors: | , |
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| Format: | Default Article |
| Published: |
2013
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| Subjects: | |
| Online Access: | https://hdl.handle.net/2134/23370 |
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