This paper addresses the outcome of international tax competition in the presence of multinationals that use transfer pricing for strategic purposes as well as to reduce their tax burden. We examine how economic integration ...

The 1990s was a decade of increased economic integration. The decade also witnessed a sharp increase in cross-border mergers and acquisitions (M&As). From a theoretical perspective, the increase in M&As in more integrated ...

This paper analyses the development of the ratio of corporate taxes to wage taxes using a simple political economy model with internationally mobile and immobile firms. Among other results, our model predicts that countries ...

We develop a model where trade liberalization leads to skill-biased technological change, which in turn raises the relative return to skilled labor. When firms get access to a larger market, the relative profitability of ...