Many countries levy reduced-rate indirect taxes on newspapers, with proclaimed policy goals of stimulating investment in journalism and ensuring low newspaper prices. However, by taking into account the fact that the ...

In this paper we show how an upstream firm can prevent destructive competition among downstream firms producing relatively close substitutes by implementing a price-dependent profit-sharing rule. The rule also ensures ...

We set up a simple trade model with two countries hosting one firm each. The firms invest in cost-reducing R&D, and each government may grant R&D subsidies to the domestic firm. We show that it is optimal for a government ...

This paper deals with two questions: First, what are the determinants of FDI? Second, what is the role of FDI in economic development? In order to provide some answers to these questions, we draw upon the existing ...

Two-sided platform firms serve distinct customer groups that are connected through interdependent demand, and include major businesses such as the media industry, banking, and the software industry. A well known result ...

The rising importance of multinationals in the world economy has been accompanied by a rise in trade between affiliates of multinationals located in different countries, and by profits being shifted to low tax countries. ...

Almost all the literature on tax competition in the presence of multinationals (MNCs) ignores the combined effect of profit shifting and economic integration (i.e., a reduction in trade costs) on equilibrium capital ...