dc.contributor.author | Kind, Hans Jarle | |
dc.contributor.author | Midelfart, Karen Helene | |
dc.contributor.author | Schjelderup, Guttorm | |
dc.date.accessioned | 2006-09-06T06:52:40Z | |
dc.date.available | 2006-09-06T06:52:40Z | |
dc.date.issued | 1998-07 | |
dc.identifier.issn | 0804-6824 | |
dc.identifier.uri | http://hdl.handle.net/11250/163018 | |
dc.description.abstract | Models with imperfect competition and intra-industry trade have become
widely accepted as appropriate frameworks within which to analyze the impact
of trade liberalization on industrial agglomeration. This paper makes one
modi…cation to the standard model; it allows for taxation of internationally
mobile capital. Making this change fundamentally alters the main lesson from
the tax literature that a country which faces perfectly internationally mobile
capital should not use source-based taxes on capital income. In particular, it
is shown that a country which hosts an agglomeration may actually increase
its welfare level per capita by levying a source-tax on capital income even if
capital can move costlessly between countries. It is thereby able to exploit the locational inertia created by agglomeration forces. | en |
dc.format.extent | 252376 bytes | |
dc.format.mimetype | application/pdf | |
dc.language.iso | eng | en |
dc.publisher | Norwegian School of Economics and Business Administration. Department of Economics | en |
dc.relation.ispartofseries | Discussion paper | en |
dc.relation.ispartofseries | 1998:7 | en |
dc.title | Industrial agglomeration and capital taxation | en |
dc.type | Working paper | en |