With a novel approach this paper sheds light on the international tax planning possibilities of multinationals. The international corporate tax system is considered a network, just like for transportation, and ‘shortest’ paths are computed, minimizing tax payments for the...

We examine the impact of bilateral investment treaties (BITs) on bilateral FDI stocks using extensive data from 1985 until 2011. We correct for endogeneity using indicators for governance and membership of international organisations. We find that ratified BITs increase on average bilateral...

The key result of the tax competition literature is that governments set inefficiently low tax rates on income from internationally mobile production factors. Therefore, there is a case for coordination of EU capital income taxes, provided that capital is mobile within the EU. We measure how...

This volume presents three studies on the VAT. The first study is a VAT primer for lawyers, economists, and accountants who rarely talk to each other about tax issues, particularly in the Netherlands. The different views illuminate the nature and workings of the VAT. The second study examines...

This CPB Discussion Paper studies a conditional block grant that Dutch municipalities receive for welfare-to-work programs. Many municipalities do not fully use this grant, although programs are beneficial for them. We argue that municipalities incur expenses to use the grant. If these costs...

Pleas for a level playing field, for instance in international trade, are often not well-founded. This is because it is not exactly clear what a 'level playing field' means. But even if it would be clear what the plea would imply, a level playing field is not always desirable from an economic...

This paper uses the exogenous variation caused by the Dutch tax reform of 2001 to investigate how married women react to financial incentives.<font face="CMR10" size="3"><font face="CMR10" size="3">Among OECD countries, the Netherlands has average female labor force participation, but by far the highest rate of part-time work. Our main conclusion is...</font></font>

This paper investigates the effect of obtaining an individual research grant (Vernieuwingsimpuls or IRI -grant) on the careers of Dutch scientists. <strong>The main goal of this scheme of the Dutch Research Council is to provide relatively young, talented scientists with appealing career opportunities...</strong>

We study the extension of an EITC for single mothers in the Netherlands to mothers with a youngest child of 12 to 15 years old. This reform has increased the net income for the treatment group by 5%. Using both DD and RD, we show that this reform has had a negligible effect on labour...

We estimate long-run and short-run elasticities of Value Added Tax and Personal Income Tax revenues with respect to their bases for the Netherlands. We find VAT elasticities around one in the long-run and short-run. The long-run PIT elasticity is significantly below one, while the short-run...