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The Dynamics of the Location of Firms – A Revisit of Home-Attachment under Tax Competition

Author

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  • Yutao Han

    (CREA, Université du Luxembourg)

  • Patrice Pieretti

    (CREA, Université du Luxembourg)

  • Benteng Zou

    (CREA, Université de Luxembourg)

Abstract

We revisit the investment home-bias situation of firms and extend the home attachment setting of Mansoorian and Myers (1993) and Ogura (2006) into a dynamic framework. We locate firms based on their home attachment preferences, which is also changing over time based on some updated spillover information. Some applications, in static and dynamic tax competition, are presented following our home-attachment principle.

Suggested Citation

  • Yutao Han & Patrice Pieretti & Benteng Zou, 2013. "The Dynamics of the Location of Firms – A Revisit of Home-Attachment under Tax Competition," DEM Discussion Paper Series 13-15, Department of Economics at the University of Luxembourg.
    • Handle: RePEc:luc:wpaper:13-15
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    File URL: https://hdl.handle.net/10993/13277
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    References listed on IDEAS

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    1. Han, Yutao & Pieretti, Patrice & Zanaj, Skerdilajda & Zou, Benteng, 2014. "Asymmetric competition among nation states: A differential game approach," Journal of Public Economics, Elsevier, vol. 119(C), pages 71-79.

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    More about this item

    Keywords

    Dynamic tax competition; Home attachment; Foreign direct investment-disinvestment;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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