In this paper, we analyze tax competition in a model where investor firms have the choice between two types of investment, greenfield investment and mergers and acquisitions. We show that the coexistence of these two types of investment intensifies tax competition in comparison to the case where...

The welfare implications of vertical mergers have been a subject of disagreement for decades. Similar to horizontal mergers, economists need to weigh the efficiency gains relative to the market power concerns when considering the competitive effects of vertical mergers. However, in vertical...

In the U.S., the measured markup has been increasing since the 1980s. This paper analyzes the impact of the mergers and acquisitions (M&As) market on aggregate markup. We first provide empirical evidence that a firm's markup—measured as the difference between its price and marginal...