Egger, Peter; Merlo, Valeria; Wamser, Georg - CESifo - 2014
, distinguishing firms that are able to avoid taxes (avoiders) from those that are not (non-avoiders). From a theoretical point of view … profit taxes is inherently unobservable to the researcher. To address this problem, we use a finite mixture modeling approach … find that investments of tax avoiders do not respond to host-country profit taxes at all, while those of non-avoiders do …