We analyse tax competition between two countries of unequal size trying to attract a foreign-owned monopolist. When national governments have only a lump-sum profit tax (subsidy) at their disposal, but face exogenous and identical transport costs for imports, then both countries will be willing...

This paper investigates parole decisions when the offender may commit a second crime after having been set free. A convicted person is discharged earlier if the cost of the crime declines or the cost of the imprisonment increases. More dangerous offenders will be dismissed later unless the...

This paper analyses the implications of unemployment for fiscal competition and tax coordination among small open economies. Unemployment is modeled as resulting from wage bargaining. The analysis focuses on the effect of labour and capital tax coordination on welfare. We show that, while...

The paper uses the self-selection approach of to study tax competition and tax coordination in a many country-optimum income tax model. In the model, the government can impose a non-linear tax schedule on wage income and a (source-based) tax on mobile capital. In an uncoordinated equilibrium, it...

Banks play a central role in financing and monitoring Firms intransition economies. We study how bank competition affects theefficiency of the credit allocation, the monitoring of firms, and thefirms’ restructuring effort. In our model, banks compete to finance aninvestment project with...