Krautheim, Sebastian; Schmidt-Eisenlohr, Tim - Centre d'Économie de la Sorbonne, Université Paris 1 … - 2009
with homogeneous firms understate the strenght of tax competition. … that a higher degree of firm heterogeneity (a mean-preserving spread of the cost distribution) increases the degree of tax … competition, i.e. it decreases the equilibrium tax rate of the large country, leads to higher outflows of its tax base and thus …