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.
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Paper provided by Norwegian School of Economics and Business Administration- in its series Papers with number
11/98.
Length: 47 pages Date of creation: 1998 Date of revision: Handle: RePEc:fth:norgee:11/98
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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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Roger H. Gordon & James R. Hines Jr., 2002.
"International Taxation,"
NBER Working Papers
8854, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions:
Gordon, Roger H. & Hines, James Jr, 2002.
"International taxation,"
Handbook of Public Economics,
in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 4, chapter 28, pages 1935-1995
Elsevier.
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