Migration, Wages and Fiscal competition

E-print/Working paper (2013)

From tax evasion to tax planning

E-print/Working paper (2013)

This paper analyzes within a simple model how a removal of bank secrecy can impact tax revenues and banks'profitability, assuming that offshore centers are able to offer sophisticated but legal, tax ... [more ▼]

This paper analyzes within a simple model how a removal of bank secrecy can impact tax revenues and banks'profitability, assuming that offshore centers are able to offer sophisticated but legal, tax planning. Two alternative regimes are considered. A first, in which there is strict bank secrecy and a second, where there is international information exchange for tax purposes. In particular, we show that sharing tax information with onshore countries can be a dominant strategy for an OFC if there is enough scope for providing tax planning. Moreover, a partial reduction of tax liabilities can already prompt OFCs to voluntarily exchange relevant tax information. We also discuss the conditions under which the possible removal of bank secrecy may reduce or increase the onshore country's tax revenue. [less ▲]

Clean technology adoption

in Strategic Behavior and the Environment (2012)

On the long run economic performance of small economies

E-print/Working paper (2012)

In this paper, we analyze the long run economic performance of a small economy open to foreign investments. Policy instruments used to attract investments are taxes and attractive public infrastructures ... [more ▼]

In this paper, we analyze the long run economic performance of a small economy open to foreign investments. Policy instruments used to attract investments are taxes and attractive public infrastructures, whereas the policy choices of the rest of the world are taken as given. Applying the Pontryagin’s maximum principle, we first show that there exists one long run optimal size of the small economy which is saddle-point stable. The transitional path is two-dimensional, if the small economy is patient enough. Then, we show that the share of tax income allocated to the infrastructure expenditures plays an important role in attaining such a steady state. However, a deviation from this policy path can lead to an eventual economic collapse. [less ▲]

Clean technology adoption under Cournot competition

in Strategic Behavior and the Environment (2012)

Asymmetric Competition among Nation States: A Differential Game Approach

E-print/Working paper (2012)

This paper analyzes the impact of foreign investments on a small country's economy in the context of international competition. To that end, we model tax and infrastructure competition within a ... [more ▼]

This paper analyzes the impact of foreign investments on a small country's economy in the context of international competition. To that end, we model tax and infrastructure competition within a differential game framework between two unequally sized countries. The model accounts for the widely recognized characteristic that small states are more flexible in their political decision making than larger countries. However, we also acknowledge that small size is associated with limited institutional capacity in the provision of public goods. The model shows that the long-term outcome of international competition crucially depends on the degree of capital mobility. In particular, we show that flexibility mitigates against - but does not eliminate - the likelihood of collapse in a small economy. Finally, we note that the beneficial effect of flexibility in a small state increases with its inefficiency in providing public infrastructure and with the degree of international openness. [less ▲]

On tax competition, public goods provision and jurisdictions' size

in Journal of International Economics (2011), 84(1), 124-130

Intégration financière, attractivité et prise de risque dans les banques de pays émergents

in Mondes en Développement (2010), 149

The aim of this paper is to analyze the risk taking behaviour of banks in emerging economies in a context of international bank competition for deposits. In this framework, we find no monotone link ... [more ▼]

The aim of this paper is to analyze the risk taking behaviour of banks in emerging economies in a context of international bank competition for deposits. In this framework, we find no monotone link between the information disclosure of risk management and excessive risk taking, since this relationship depends on the intensity of international competition. Furthermore, the presence of deposit insurance increases the likelihood of excessive risk taking only if information about risk management is sufficiently disclosed, in a context of high mobility of capital. [less ▲]

On uncertainty when it affects successive markets

in Economics Letters (2010), 106(2), 133-136

A note on successive oligopolies and vertical mergers

in Communications et Stratégies (2007), 68