%0 Journal Article
%T Equilibria and Location Choice in Corporate Tax Regimes
%A Ben J. Niu
%J Public Finance Review
%@ 1552-7530
%D 2019
%R 10.1177/1091142117729434
%X This article considers the impact of preferential, base-specific taxation on equilibrium revenues. While policy makers have argued that it generates a prisoner¡¯s dilemma result, there is mixed support in the academic literature. Using a more plausible model with asymmetric base elasticities and heterogeneity of both firms and countries, I find that preferential taxation can generate greater revenues if countries exhibit sufficient productivity and/or population asymmetry. It is also less distortionary except in cases where moving costs are fully deductible. Allowing for noncorrelated, cross-country profits is the key factor as it generates base expansion effects
%K tax competition
%K preferential taxation
%K international
%K corporate taxation
%U https://journals.sagepub.com/doi/full/10.1177/1091142117729434