Migration and Wage Effects of Taxing Top Earners: Evidence from the Foreigners’ Tax Scheme in Denmark

Kleven, Henrik J., Camille Landais, Emmanuel Saez, Esben Schultz (2013) The Quarterly Journal of Economics 129.1, 333-78. [2011]   Abstract This article analyzes the effects of income taxation on the international migration and earnings of top earners using a Danish preferential foreigner tax scheme and population-wide Danish administrative data. This scheme, introduced in 1991, allows new immigrants withContinue reading “Migration and Wage Effects of Taxing Top Earners: Evidence from the Foreigners’ Tax Scheme in Denmark”

Corporate tax competition between firms

Loretz, Simon and Padraig Moore (2013) International Tax and Public Finance 20(5), pages 725-75. [2009] Abstract Firms’ tax planning decisions, similar to their other operational decisions, are made in a competitive environment. Various stakeholders observe the tax payments and evaluate these against the relevant peer group. This implies firms might not simply minimise their taxContinue reading “Corporate tax competition between firms”

Effective labor taxation and the international location of headquarters

Egger, Peter, Doina Radulescu, and Nora Strecker (2013) International Tax and Public Finance 20.4, 631-652. [2013] Abstract Profit taxes are widely acknowledged to influence the location of firms’ headquarters. This paper sheds light on the role of aspects of labor taxation for the international location of headquarters. While profit taxes can be avoided in various ways, itContinue reading “Effective labor taxation and the international location of headquarters”

Taxation and the Financial Crisis

Alworth, Julian S. and Giampaolo Arachi Oxford: Oxford University Press. [2010] Summary This book examines how tax policies contributed to the financial crisis and whether taxation can play a role in the reform efforts to establish a sounder and safer financial system. It looks at the pros and cons of various tax initiatives including limitingContinue reading “Taxation and the Financial Crisis”

Corporate taxation and the choice of patent location within multinational firms

Karkinsky, Tom and Nadine Riedel (2012) Journal of International Economics 88.1, 176-185. [2011] Abstract Corporate patents are important assets in the modern economy, where knowledge is highly valued. In many multinational enterprises (MNEs), they constitute a major portion of the business’s value. The intra-firm transfer pricing process for patent-related royalty payments is moreover often highlyContinue reading “Corporate taxation and the choice of patent location within multinational firms”

Firms’ financial choices and thin capitalization rules under corporate tax competition

Haufler, Andreas and Marco Runkel (2012) European Economic Review 56.6, 1087-1103. [2008] Abstract Thin capitalization rules have become an important element in the corporate tax systems of developed countries. This paper sets up a model where national and multinational firms choose tax-efficient financial structures and countries compete for multinational firms through statutory tax rates andContinue reading “Firms’ financial choices and thin capitalization rules under corporate tax competition”

Carbon Taxation in Europe: Expanding the EU Carbon Price

Weisbach, David A. (2012) Expanding the EU Carbon Price”, Journal of Environmental Law 24.2, 183–206. [2011] Abstract The current pricing mechanism for carbon in the EU, the EU emissions trading system, only covers 40% of emissions. Carbon taxation currently plays no role. The Commission has recently proposed revising the energy tax system in the EUContinue reading “Carbon Taxation in Europe: Expanding the EU Carbon Price”

How do Firms’ Outward FDI Strategies Relate to their Activity at Home? Empirical Evidence for the UK

Simpson, Helen (2010) The World Economy 243-72. [2008] Abstract This paper provides new empirical evidence on the relationship between the structure of firms’ overseas FDI and the performance and organisation of their home‐country operations in both manufacturing and business services. It addresses two questions. First, does sorting into multinational status on the basis of productivityContinue reading “How do Firms’ Outward FDI Strategies Relate to their Activity at Home? Empirical Evidence for the UK”

Profit Shifting in the EU: Evidence from Germany

Weichenrieder, Alfons (2009) International Tax and Public Finance 6.3, 281-297. [2006] Abstract The paper considers profit shifting behavior using data on German inbound and outbound FDI. It finds an empirical correlation between the home country tax rate of a parent and the net of tax profitability of its German affiliate that is consistent with profitContinue reading “Profit Shifting in the EU: Evidence from Germany”

Relocation of headquarters and international taxation

Voget, Johannes (2011) Journal of Public Economics 95.9-10, 1067-1081. [2008] Abstract About 6% of multinationals relocated their headquarters to another country in the 1997–2007 period. This paper presents empirical evidence on the role of taxes in these relocation decisions. It considers a sample of 140 multinationals that relocated their headquarters over the past decade andContinue reading “Relocation of headquarters and international taxation”