HAUFLER ANDREAS; WOOTON IAN - CESifo GmbH <München> - 2007
We set up a model of generalised oligopoly where two countries of different size compete foran exogenous, but variable … economicintegration proceeds, equilibrium taxes decline, switching from positive to negative levels,and then rise as trade costs fall even …
countries (or both).1
A second policy area where an increased \bargaining power" of mobile flrms vis- a-vis
host governments …