# Corporate income tax rates in Nash equilibrium

This is from the job market paper of Yang Shen, a candidate at Brown University:

I calibrate a three-country version of the model to data on trade, MP, and corporate tax rates for Germany, Ireland, and the United States. I then compute the Nash equilibrium corporate tax rates and calculate the associated welfare changes. The United States would undertake the largest tax cut in the Nash equilibrium, in an attempt to widen market entry of marginal firms. All three countries would experience welfare gains under the Nash tax rates.

In her model, the United States should cut its corporate tax rate by eleven percentage points. Shout it from the rooftops, as they say…