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Taxes, Keiretsu Affiliation, and Income Shifting

Gramlich, Jeffrey D.; Limpaphayom, Piman; Rhee, S. Ghon - Tinbergen Instituut - 2002

This paper provides evidence that keiretsu group member firms are subject to lowereffective tax rates than independent firms in Japan. As one explanation for this phenomenon, wedevelop a hypothesis that keiretsu firms strategically shift financially reported income amongaffiliates in order to...

Persistent link: https://www.econbiz.de/10011255847

Disagreement and Flexibility: A Theory of Optimal Security Issuance and Capital Structure

Boot, Arnoud W.A.; Thakor, Anjan V. - Tinbergen Instituut - 2003

financed. Debt offers little flexibility relativeto equity. However, the flexibility offered by equity depends on the extent to …’s optimal security-issuance choice trades off the flexibilitybenefit of equity against the now-familiar debt tax shield, and the …’s stock price, implying that firms issue equity when stockprices are high and debt when stock prices are low. The theory …

Persistent link: https://www.econbiz.de/10011242147

Capital Structure and the Redeployability of Tangible Assets

Campello, Murillo; Giambona, Erasmo - Tinbergen Instituut - 2011

We characterize the relation between corporate asset structure and capital structure by exploitingvariation in the salability of tangible assets. Theory suggests that tangibility increases borrowingcapacity because it allows creditors to more easily repossess a firm’s assets. Tangible assets,...

Persistent link: https://www.econbiz.de/10011255648

Environmental Tax Reform and Double Dividend

Patuelli, Roberto; Pels, Eric; Nijkamp, Peter - Tinbergen Instituut - 2002

In this paper we offer a meta-analysis approach to (simulation) studies on environmental tax reform (ETR). The underlying studies look both at environmental effects (e.g. reduction in CO2 emission) and economic effects (e.g. change in gross domestic product) following such a tax reform. The...

Persistent link: https://www.econbiz.de/10011256453

Input versus Output Taxation in an Experimental International Economy

Riedl, Arno; Winden, Frans van - Tinbergen Instituut - 2003

This discussion paper led to a publication in <A href="http://www.sciencedirect.com/science/article/pii/S0014292111000912">'European Economic Review'</A>, 56(2) 216-32.This paper is concerned with a policy oriented macroeconomic experiment involving an 'international' economy with a relatively small 'home' country and a large 'foreign' country. It compares the economic...</a>

Persistent link: https://www.econbiz.de/10011256796

On Taxation in a Two-Sector Endogenous Growth Model with Endogenous Labor Supply

Hek, Paul A. de - Tinbergen Instituut - 2003

This paper examines the effects of taxation on long-run growthin a two-sector endogenous growth model with (i) physical capitalas an input in the education sector and (ii) leisure as anadditional argument in the utility function. The analysis of theeffects of taxation - including income...

Persistent link: https://www.econbiz.de/10011256980

The Economic Value of Flexibility when there is Disagreement

Boot, Arnoud W.A.; Thakor, Anjan V. - Tinbergen Instituut - 2003

We develop an economic theory of “flexibility”, which we interpret as the discretion orability to make a decision that others disagree with. We show that flexibility is essentiallyan option for the decisionmaker, and can be valued as such. The value of the flexibilityoption is decreasing in...

Persistent link: https://www.econbiz.de/10011249540

Ranking Systemically Important Financial Institutions

Dungey, Mardi; Luciani, Matteo; Veredas, David - Tinbergen Instituut - 2012

after the introduction of TARP and the rescue of AIG. Anxiety about European debt markets saw the systemic risk begin to …

Persistent link: https://www.econbiz.de/10011255476

More Hedging Instruments may destablize Markets

Brock, William; Hommes, Cars; Wagener, Florian - Tinbergen Instituut - 2006

This discussion paper resulted in a publication in the Journal of Economic Dynamics & Control. Volume 33(11), pp. 1912-1928. This paper formalizes the idea that more hedging instruments may destabilize markets when traders are heterogeneous and adapt their behavior according to experience based...

Persistent link: https://www.econbiz.de/10011255525

The Political Economy of Dominant Investors

Perotti, Enrico C.; Thadden, Ernst-Ludwig von - Tinbergen Instituut - 2004

We allow the preference of a political majority to determine boththe corporate governance structure and the division of profits betweenhuman and financial capital. In a democratic society where financialwealth is concentrated, a political majority may prefer to restraingovernance by dispersed...

Persistent link: https://www.econbiz.de/10011255534