Taxation of foreign multinationals: a sequential bargaining approach to tax holidays
| Authors |
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| Publication date |
10-1994
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| Journal |
International Tax and Public Finance
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| Volume | Issue number |
1 | 3
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| Pages (from-to) |
211-225
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| Number of pages |
15
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| Organisations |
-
Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
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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.
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| Document type |
Article
|
| Language |
English
|
| Published at |
https://doi.org/10.1007/BF00873838
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