Konrad, Kai A.; Kovenoch, Dan - Institut d'Economia de Barcelona (IEB), Facultat … - 2009
subject to extortionary taxation. We study the interaction between these aspects in a simple vintage capital framework with … discrete time and an infinite horizon, focussing on Markov perfect equilibrium. We show that the equilibrium taxation … use discriminatory taxation. If countries can provide fiscal incentives for attracting new firms, this stabilizes existing …