Petkova, Kunka; Stasio, Andrzej; Zagler, Martin - 2020
Tax treaties are often seen as a means to mitigate fierce tax competition. We challenge this view by arguing that taxes … rates. As opposed to traditional tax competition, where every foreign investor would benefit from lower tax rates, we show … una↵ected. We call this bilateral tax competition, and we test these predictions empirically. We focus on the four treaty …