Market size, product differentiation and bidding for new varieties
| Autor: | Jie Ma, Ian Wooton |
|---|---|
| Rok vydání: | 2019 |
| Předmět: |
Economics and Econometrics
Tax competition 05 social sciences Product differentiation Foreign direct investment Bidding Investment (macroeconomics) HG Microeconomics Competition (economics) Investment decisions Accounting 0502 economics and business Business 050207 economics Finance Industrial organization 050205 econometrics Public finance |
| Zdroj: | International Tax and Public Finance. 27:257-279 |
| ISSN: | 1573-6970 0927-5940 |
| DOI: | 10.1007/s10797-019-09559-4 |
| Popis: | We analyse a firm’s investment decision in a regional economy composed of two countries. The firm already manufactures a horizontally differentiated good in the region, and we determine the firm’s equilibrium location choice for the new good and the welfare consequences of fiscal competition between the two countries. We find that the firm’s location decision is efficient. Fiscal competition does not affect the location of production but merely redistributes rents between the firm and the taxpayers of the host country. As far as we know, the tax competition literature has not previously addressed the issue of product differentiation. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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