Gradualism In Tax Treaties With Irreversible Foreign Direct Investment*
解释双边税收协定中的税率为何逐渐下降，认为不可逆的FDI决定了初始减税幅度，而渐进减税能增加不可逆FDI，使进一步减税成为可能，最终可能达到帕累托最优税率。
Bilateral tax treaties govern host country taxation for most of the world's foreign direct investment (FDI). To explain why the tax rates used under these treaties are gradually falling we consider two‐way capital flows with irreversible FDI. The extent of irreversibility determines the magnitude of initial tax reductions. When Pareto‐optimal taxes are not initially self‐enforcing, more modest tax reductions generate an increase in irreversible bilateral FDI so that further tax reductions become self‐enforcing. Depending on the extent of irreversibility and asymmetry, Pareto‐optimal tax rates may be obtainable in the long run.