Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/84171
Authors: 
Schwerhoff, Gregor
Edenhofer, Ottmar
Year of Publication: 
2013
Series/Report no.: 
CESifo Working Paper 4420
Abstract: 
We set up a general model on capital mobility which contains many of the models in the literature as special cases. The race to the bottom results not from a capital flight effect, but rather from a kind of Laffer curve effect in public good provision. Selectively introducing simplifying assumptions allows reproducing other models and understanding how they bias results in favor or against capital mobility. We then show how the net effect of capital mobility can be positive or negative within the same model depending on the relative capital endowment.
Subjects: 
capital mobility
interjurisdictional competition
public good provision
JEL: 
D62
H21
H50
H73
H87
Document Type: 
Working Paper

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