Investment-Curve Model of Tax Optimization and Tax Competition
EERC Working Paper Series from EERC Research Network, Russia and CIS
The model of competition for investment assumes that regions use individualized tax relief for different projects and produce public goods. The capital market allocates investments among regions, and the labor market adjusts wages and employment. Simulations with the model under different assumptions on regions’ behavior should discover clusters of developing and stagnating regions.
Pages: 60 pages
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