Policy makers have long been interested in whether tax policies can be used to encourage entrepreneurial activity, but prior studies have produced ambiguous results. We use a twelveyear panel of tax return data to examine the effects of tax rates on entrepreneurial entry. We calculate household-level tax rates and employ multiple measures of entrepreneurship. Our results offer convincing eviden...

This paper examines the effect of public acquisitions of open space on 1 changes in house prices and the municipal tax base using municipal-level data from 2 New Jersey. We find that open-space expenditures yield a stream of benefits in the 3 future but that any effect of open-space acquisitions on the tax base is immediate. 4 Finally, we find that while higher tax rates are associated with a l...

We use the occasion of a change in tax policy that raised the tax rate for many of the listed companies in China to examine tax-induced earnings management (TEM) from the perspective of political connections. We find that when the tax rate increased, only those affected firms with politically connected management engaged in TEM. This suggests that, in addition to motivation for managing earning...

Agglomeration tendencies of industrial firms significantly affect the nature of tax competition. This paper analyzes tax competition between two countries over an infinite time horizon in an economy with trade costs and internationally mobile industrial firms. Most of the previous studies on tax competition in the ‘new economic geography’ framework employ static models. In this study, two gover...

This paper aims to provide a comprehensive survey of the theory of international tax competition. Starting with the standard framework, it visits the non-cooperative equilibrium of tax competition, analyses aspects of partial and regional coordination, repeated interaction, stock-flow-effects, agglomeration effects and time consistency issues in dynamic models. We discuss profit shifting in the...

FDI flows grew exponentially during the 1990s, experienced a sharp decline over the period 20012004, and have recently started to recover. The decline was mostly due to a fall in FDI flows within the OECD, particularly of FDI flows to continental Europe. In recent years, FDI flows to developing countries have also increased substantially. This trend has been encouraged by governments who view i...

In this paper, I examine how the specific nature of economic integration in the European Union has affected member states’ redistribution policies over the last two decades. More precisely, I attempt to detail the effect of social-tax competition between member states within social models, processes that I label “races to bottoms.” In this framework, I identify the emergence of an informal set ...

91 National Tax Journal Vol. LVl, No. 1, Part 1 March 2003 Abstract Concerns about devolving environmental regulatory powers to lower levels of government permeate debates in the U.S. and Europe about the appropriate level of regulatory authority. In theory, given a long list of conditions, regulatory competition by local governments can be efficient in the same way that tax competition can be ...