working Paper
Asymmetric competition among Nation States: a differential game approach
published
Yutao
Han
author
Patrice
Pieretti
author
Skerdilajda
Zanaj
author
Benteng
Zou
author
10053
department
This paper analyzes the impact of foreign investments on a small country's economy in the context of international competition. To that end, we model tax and infrastructure competition within a differential game framework between two unequally sized countries. The model accounts for the widely recognized characteristic that small states are more flexible in their political decision making than larger countries. However, we also acknowledge that small size is associated with limited institutional capacity in the provision of public goods. The model shows that the long-term outcome of international competition crucially depends on the degree of capital mobility. In particular, we show that flexibility mitigates against - but does not eliminate - the likelihood of collapse in a small economy. Finally, we note that the beneficial effect of flexibility in a small state increases with its inefficiency in providing public infrastructure and with the degree of international openness.
https://pub.uni-bielefeld.de/download/2671707/2671708/IMW_working_paper_460.pdf
application/pdfno
Center for Mathematical Economics2012
eng
Tax/Infrastructure competitionOpen-loop/Markovian strategiesDifferential games
0931-6558urn:nbn:de:0070-pub-26717074
46023
https://doi.org/10.1016/j.jpubeco.2014.07.008
Han, Y., Pieretti, P., Zanaj, S., & Zou, B. (2012). <em>Asymmetric competition among Nation States: a differential game approach</em> (Working Papers. Institute of Mathematical Economics, 460). Bielefeld: Center for Mathematical Economics.
Han, Y., Pieretti, P., Zanaj, S., Zou, B.: Asymmetric competition among Nation States: a differential game approach. Working Papers. Institute of Mathematical Economics, 460. Center for Mathematical Economics, Bielefeld (2012).
Han Y, Pieretti P, Zanaj S, Zou B (2012) <br /><em>Asymmetric competition among Nation States: a differential game approach</em>. Working Papers. Institute of Mathematical Economics; 460.<br />Bielefeld: Center for Mathematical Economics.
Y. Han, P. Pieretti, S. Zanaj, and B. Zou, <em>Asymmetric competition among Nation States: a differential game approach</em>, Center For Mathematical Economics, Bielefeld, <strong>2012</strong>.
Han Y, Pieretti P, Zanaj S, Zou B (2012) Working Papers. Institute of Mathematical Economics; 460.<br />Bielefeld: Center for Mathematical Economics.
Han, Y.; Pieretti, P.; Zanaj, S.; Zou, B. (2012): Asymmetric competition among Nation States: a differential game approach. Bielefeld: Center for Mathematical Economics.
<div style="text-indent:-25px; padding-left:25px;padding-bottom:0px;">Han, Y., Pieretti, P., Zanaj, S., & Zou, B. (2012). <em>Asymmetric competition among Nation States: a differential game approach</em> (Working Papers. Institute of Mathematical Economics, 460). Bielefeld: Center for Mathematical Economics.</div>
Han, Y., Pieretti, P., Zanaj, S., and Zou, B. (2012). Asymmetric competition among Nation States: a differential game approach. <em>Working Papers. Institute of Mathematical Economics</em>, 460, Bielefeld: Center for Mathematical Economics.
Han, Y., et al., 2012. <em>Asymmetric competition among Nation States: a differential game approach</em>, Working Papers. Institute of Mathematical Economics, no.460, Bielefeld: Center for Mathematical Economics.
Y. Han, et al., <em>Asymmetric competition among Nation States: a differential game approach</em>, Working Papers. Institute of Mathematical Economics, vol. 460, Bielefeld: Center for Mathematical Economics, 2012.
<div style="text-indent:-25px; padding-left:25px;padding-bottom:0px;">Han, Yutao, Pieretti, Patrice, Zanaj, Skerdilajda, and Zou, Benteng. 2012. <em>Asymmetric competition among Nation States: a differential game approach</em>. Vol. 460. Working Papers. Institute of Mathematical Economics. Bielefeld: Center for Mathematical Economics.</div>
<div style="text-indent:-25px; padding-left:25px;padding-bottom:0px;">Han, Y., Pieretti, P., Zanaj, S. & Zou, B. (2012). <em>Asymmetric competition among Nation States: a differential game approach</em> (Working Papers. Institute of Mathematical Economics). Bielefeld: Center for Mathematical Economics.</div>
Han Y, Pieretti P, Zanaj S, Zou B. <em>Asymmetric competition among Nation States: a differential game approach</em>. Working Papers. Institute of Mathematical Economics. Vol 460. Bielefeld: Center for Mathematical Economics; 2012.
Han, Yutao, Pieretti, Patrice, Zanaj, Skerdilajda, and Zou, Benteng. <em>Asymmetric competition among Nation States: a differential game approach</em>. Bielefeld: Center for Mathematical Economics, 2012. Working Papers. Institute of Mathematical Economics. 460.
26717072014-04-15T12:55:53Z2018-08-27T12:52:22Z