With the completion of the internal market many possibilities for the EU member states to protect their markets against imports are restricted or even eliminated. This gives, however, member states the incentive to use other policy instruments. This paper analyzes the effect of liberalizing...

With the completion of the internal market in the EU pressures may arise to diminish social insurance budgets. In a two-country model with an (imperfectly) integrated consumer goods market it is shown that competitive member states use the social insurance tax rate as an instrument to tax...

This paper analyzes a multinational's transfer of technology to a foreign subsidiary for the case where there is a risk of expropriation. An expropriation is assumed to give rise to competition between the parts of the previous multinational enterprise. To reduce the benefit of expropriation,...

Abstract: We examine the dynamic feedback effects of fiscal policies on the government budget and economy activity in a calibrated general equilibrium framework featuring endogenous growth through creative destruction. For several European countries, we find that making tax incentives with...