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Profit Shifting and Investment Effects : The Implications of Zero-Taxable Profits

Köthenbürger, Marko - 2018

Recent empirical research documents a tendency of affiliates of multinational enterprises to bunch around zero reported profit. Setting up a model that allows for profitable and loss-making affiliates of multinationals, we show that profit shifting to a low-tax country as well as a loss-related,...

Persistent link: https://www.econbiz.de/10012921411

Mergers and Partial Ownership

Foros, Øystein - 2010

In this paper we compare the profitability of a merger to the profitability of a partial ownership arrangement and find …

Persistent link: https://www.econbiz.de/10013148773

Liquidity, Term Spreads and Monetary Policy

Aksoy, Yunus - 2013

the risk of maturity transformation. First, we show that fluctuations of the future profitability of banks' portfolios … risk. When economic activity is reaching its peak, expected profitability is relatively high and spreads are low; during a … recession expected profitability is relatively low and spreads are high, in line with the time series properties of term spreads …

Persistent link: https://www.econbiz.de/10013089685

Taxation and Corporate Risk-Taking

Langenmayr, Dominika - 2017

We study whether the corporate tax system provides incentives for risky firm investment. We analytically and empirically show two main findings: first, risk-taking is positively related to the length of tax loss periods because the loss rules shift some risk to the government; and second, the...

Persistent link: https://www.econbiz.de/10012950288

Risk Management-Driven Policy Rate Gap

Caggiano, Giovanni - 2018

We employ real-time data available to the US monetary policy makers to estimate a Taylor rule augmented with a measure of financial uncertainty over the period 1969-2008. We find evidence in favor of a systematic response to financial uncertainty over and above that to expected inflation, output...

Persistent link: https://www.econbiz.de/10012910624

Risk Sharing in Defined-Contribution Funded Pension Systems

Beetsma, Roel - 2011

This paper explores the introduction of collective risk-sharing elements in defined contribution pension contracts. We consider status-contingent, age-contingent and asset contingent risk-sharing arrangements. All arrangements raise aggregate welfare, as measured by equivalent variations. While...

Persistent link: https://www.econbiz.de/10013118167

International Trade, Risk and the Role of Banks

Niepmann, Friederike - 2014

Banks play a critical role in international trade by providing trade finance products that reduce the risk of exporting. This paper employs two new data sets to shed light on the magnitude and structure of this business, which, as we show, is highly concentrated in a few large banks. The two...

Persistent link: https://www.econbiz.de/10013054021

Risk-Sharing and Contagion in Networks

Cabrales, Antonio - 2014

We investigate the trade-off between the risk-sharing gains enjoyed by more interconnected firms and the costs resulting from an increased risk exposure. We find that when the shock distribution displays “fat” tails, extreme segmentation into small components is optimal, while minimal...

Persistent link: https://www.econbiz.de/10013055377

Risk-Taking on Behalf of Others

Eriksen, Kristoffer Wigestrand - 2017

We present an experimental study on how people take risk on behalf of others. We use three different elicitation methods, and study how each subject makes decisions both on behalf of own money and on behalf of another individual's money. We find a weak tendency of lower risk-taking with others'...

Persistent link: https://www.econbiz.de/10012960097

On Welfare Frameworks and Catastrophic Climate Risks

Millner, Antony - 2021

Recent theoretical work in the economics of climate change has suggested that climate policy is highly sensitive to ‘fat-tailed’ risks of catastrophic outcomes (Weitzman, 2009b). Such risks are suggested to be an inevitable consequence of scientific uncertainty about the effects of increased...

Persistent link: https://www.econbiz.de/10013315705