The explosion of globalization has increased firms incentives to exploit international tax differentials to their benefit. In this paper we consider a simple world with two countries with different market sizes and two multinationals with a division in each country. Both countries use a...

The paper considers a model of federation with two heterogeneous regions that try to attract the capital by competing in capital income taxes and public investment that enhance the productivity of capital. Regions' choices determine allocation of capital across the regions and their revenues...

This Paper tackles the issue of international fiscal coordination in a world where markets are integrated but national governments are sovereign. The consequences of capital market liberalization to national fiscal policies and possible remedies to resulting inefficiencies are analysed. A...

International markets for tradable emission permits (TEP) co-exist with national energy taxation. A firm trading emission permits in the international market also pays energy taxes in its host country, thus creating an interaction between the international TEP-market and national energy taxes....

This paper studies the relationship between fiscal decentralization and electoral accountability, by analysing how decentralization impacts upon incentive and selection effects, and thus on voter welfare. The model abstracts from features such as public good spillovers or economies of scale, so...

We study the political economy of social insurance in a world where individuals differ in both income and risk. Social insurance is financed through distortionary taxation and redistributes across income and risk. Individuals vote on social insurance that they can complement with insurance...

The impact of various facets of cultural diversity on economic outcomes has become a topic of intensive research in economics. This paper focuses on linguistic diversity as one of the important aspects of cultural heterogeneity, and more specifically, The aim of this paper is to formally examine...

The extent of political and fiscal centralization in Russia has experienced dramatic changes since the end of the Soviet era. The heavily centralized, both politically and economically, federal structures became dysfunctional and unstable until the introduction of the Budget and Tax Codes over...

In this note we introduce a general class of games where the payoff of every player are affected by her intrinsic taste for available strategic choices; intensity of her dyadic social interactions of with others in the peer group; and conformity effect. We show, that if the dyadic social...

Books are an important factor of cultural transmission, but need, in most cases, to be translated. According to some authors, this may lead to a form of cultural domination, in particular of English, on other languages. All these papers ignore that the population speaking English as a first...