Tax reform, delocation and heterogeneous firms /
Baldwin, Richard.
Tax reform, delocation and heterogeneous firms / Richard Baldwin, Toshihiro Okubo. - Cambridge, Mass. National Bureau of Economic Research 2009. - 1 online resource: illustrations (black and white); - NBER working paper series no. w15109 . - Working Paper Series (National Bureau of Economic Research) no. w15109. .
June 2009.
The standard international tax model is extended to allow for heterogeneous firms when agglomeration forces are important thus allowing us to study the relocation effects of taxes that vary according to firm size. We show that allowing for heterogeneity permits a given tax scheme to have an endogenously different effect on the location decision of small and big firms, with the biggest firms being endogenously more likely to relocate in reaction to high taxes. We show that a reform which flattens the tax-firm-size profile can raise tax revenue without inducing any relocation.
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Mode of access: World Wide Web.
Tax reform, delocation and heterogeneous firms / Richard Baldwin, Toshihiro Okubo. - Cambridge, Mass. National Bureau of Economic Research 2009. - 1 online resource: illustrations (black and white); - NBER working paper series no. w15109 . - Working Paper Series (National Bureau of Economic Research) no. w15109. .
June 2009.
The standard international tax model is extended to allow for heterogeneous firms when agglomeration forces are important thus allowing us to study the relocation effects of taxes that vary according to firm size. We show that allowing for heterogeneity permits a given tax scheme to have an endogenously different effect on the location decision of small and big firms, with the biggest firms being endogenously more likely to relocate in reaction to high taxes. We show that a reform which flattens the tax-firm-size profile can raise tax revenue without inducing any relocation.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.