Public Finance, 3rd Edition

Chapter 29

International Public Finance

Abstract

Analysis of the international implications of public expenditure and tax policies began in earnest in the mid-1980s and has since become a major line of research in public sector economics. The literature on international tax and expenditures issues is now so large and varied that a single chapter cannot begin to do it justice. Chapter 29 focuses on two of the main lines of research in the literature, both concerning taxation: (1) the taxation of mobile capital and (2) the ways in which multinational enterprises can exploit differences in nations’ tax policies to reduce their tax liabilities. The main goal is to highlight the models used to explore these issues. A number of excellent surveys of the ...