Keyword: firm location

This US survey examines: The FTC is opposed to Kroger’s proposed acquisition of Albertsons. Critics argue that with sufficient divestitures, the deal would be consistent with past FTC policies; (a) Kroger’s proposed acquisition of Albertsons would lead to substantially higher grocery prices and/or lower product quality/services for their customers (b) Kroger’s proposed acquisition of Albertsons would have a substantially negative effect on the two companies’ workers; (c) The public interest would be better served if antitrust policy were changed so that when a proposed merger means a market will reach a certain level of concentration, the onus is on the merging parties to show that consumers and workers will not be harmed.

This European survey examines (a) The carbon border adjustment mechanism will ensure that the European Union’s green objectives are not undermined by the relocation of EU production in the sectors under the mechanism to non-EU countries with less ambitious climate policies (‘carbon leakage'); (b) To the extent that the carbon border adjustment mechanism is effective in reducing emissions and carbon leakage, it will impose substantial costs on the economies of poorer countries

This week’s IGM Economic Experts Panel statements: A) When local governments compete by offering subsidies to a firm that is willing to relocate, and shopping across multiple alternative areas, the firm typically captures most of value that is created via the relocation. B) A federal prohibition against states and municipalities offering tax subsidies to attract specific businesses that are shopping across multiple areas to relocate would be welfare improving for the average taxpayer.

This week's IGM European Economic Experts Panel statements: A) Giving tax incentives to specific firms to locate operations in a country typically generates domestic benefits that outweigh the costs to the country providing the incentives. B) Europe as a whole benefits when European cities or countries compete with each other by giving tax incentives to firms to locate operations in their jurisdictions.

This week’s IGM Economic Experts Panel statements: A)  Giving tax incentives to specific firms to locate operations in a city or state typically generates local benefits that outweigh the costs to the city and/or state providing the incentives. B) The US as a whole benefits when cities or states compete with each other by giving tax incentives to firms to locate operations in their jurisdictions.