Government's Unknown Tax Strategy Leads to Higher Migration and Revenue.
The article explores how a government can maximize revenue by taxing firms with unknown mobility levels. It looks at different tax strategies when firms may move locations in response to tax changes. The study finds that when the government doesn't know how mobile firms are, expected tax rates and firm migration tend to be higher. However, if the government can commit to a rule-based learning system, it could lead to a better outcome for both the government and the firms.