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Strategic Tax Competition; Implications of National Ownership Author info | Abstract | Publisher info | Download info | Related research | Statistics Olsen, Trond E.
Osmundsen, Petter
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Two jurisdictions compete to capture the rents of a large multinational enterprise (MNE) which invests locally and which is partly owned by local investors. The MNE contributes to local welfare by tax payments and dividends, and it has private information about the efficiency of the operations in the two localisations. It is shown that the distortions in the MNE's real investment portfolio are determined by a trade-off between fiscal externalities and equity externalities, and that investments in the case of strategic tax competition may be lower than in the co-operative case. Ownership matters, and we show how the firm may reduce its overall tax payments by influencing the distribution of owner shares between investors in the two countries.
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number
CESifo Working Paper No. 281.
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Date of creation: 2000Date of revision:
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Keywords: Tax competition ; mobility ; common agency ; Other versions of this item:
Find related papers by JEL classification: D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
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