Tax reform, delocation and heterogeneous firms
---- Acknowledgements -----
We thank three anonymous referees and seminar participants at CES-Ifo and Kobe for helpful comments and suggestions, and Dany Jaimovich and Pierre-Louis Vézina for editorial assistance. The first draft was written in 2005 while Okubo was a PhD student at the Graduate Institute supported by NSF Grant No. 100012-105675. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.