Loading…
Competing for a duopoly: international trade and tax competition
We analyse the tax/subsidy competition between two potential host governments to attract the plants of firms in a duopolistic industry. While competition between identical countries for a monopolist’s investment is known to result in subsidy inflation,two firms can be taxed in equilibrium with the host...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Default Article |
| Published: |
2010
|
| Subjects: | |
| Online Access: | https://hdl.handle.net/2134/23373 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1818173512012005376 |
|---|---|
| author | Ben Ferrett Ian Wooton |
| author_facet | Ben Ferrett Ian Wooton |
| author_sort | Ben Ferrett (1250850) |
| collection | Figshare |
| description | We analyse the tax/subsidy competition between two potential host governments to attract the plants of firms in a duopolistic industry. While competition between identical countries for a monopolist’s investment is known to result in subsidy inflation,two firms can be taxed in equilibrium with the host countries appropriating the entire social surplus generated within the industry, despite explicit non-cooperation between governments. Trade costs mean that the firms prefer dispersed to co-located production,creating these taxation opportunities for the host countries. We determine the country-size asymmetry that changes the nature of the equilibrium, inducing concentration of production in the larger country. |
| format | Default Article |
| id | rr-article-9493862 |
| institution | Loughborough University |
| publishDate | 2010 |
| record_format | Figshare |
| spelling | rr-article-94938622010-01-01T00:00:00Z Competing for a duopoly: international trade and tax competition Ben Ferrett (1250850) Ian Wooton (7195058) Other economics not elsewhere classified untagged Economics Economics not elsewhere classified We analyse the tax/subsidy competition between two potential host governments to attract the plants of firms in a duopolistic industry. While competition between identical countries for a monopolist’s investment is known to result in subsidy inflation,two firms can be taxed in equilibrium with the host countries appropriating the entire social surplus generated within the industry, despite explicit non-cooperation between governments. Trade costs mean that the firms prefer dispersed to co-located production,creating these taxation opportunities for the host countries. We determine the country-size asymmetry that changes the nature of the equilibrium, inducing concentration of production in the larger country. 2010-01-01T00:00:00Z Text Journal contribution 2134/23373 https://figshare.com/articles/journal_contribution/Competing_for_a_duopoly_international_trade_and_tax_competition/9493862 CC BY-NC-ND 4.0 |
| spellingShingle | Other economics not elsewhere classified untagged Economics Economics not elsewhere classified Ben Ferrett Ian Wooton Competing for a duopoly: international trade and tax competition |
| title | Competing for a duopoly: international trade and tax competition |
| title_full | Competing for a duopoly: international trade and tax competition |
| title_fullStr | Competing for a duopoly: international trade and tax competition |
| title_full_unstemmed | Competing for a duopoly: international trade and tax competition |
| title_short | Competing for a duopoly: international trade and tax competition |
| title_sort | competing for a duopoly: international trade and tax competition |
| topic | Other economics not elsewhere classified untagged Economics Economics not elsewhere classified |
| url | https://hdl.handle.net/2134/23373 |