Taxation of foreign multinationals: a sequential bargaining approach to tax holidays
| Authors |
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|---|---|
| Publication date | 10-1994 |
| Journal | International Tax and Public Finance |
| Volume | Issue number | 1 | 3 |
| Pages (from-to) | 211-225 |
| Number of pages | 15 |
| Organisations |
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| Abstract | Tax holidays for foreign multinational firms are tax concessions or straight subsidies granted for a limited period after entry. Such phenomena occur widely. We apply a sequential bargaining framework to a problem of ex post bilateral monopoly characterized by the presence of a host-country government and a foreign multinational firm. We show formally how a tax holiday can arise due to irreversible outlays and outside options. |
| Document type | Article |
| Language | English |
| Published at |
https://doi.org/10.1007/BF00873838
(Final published version)
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| Permalink to this page | |
