The paper evaluates the working of German CFC rules that restrict the use of foreign subsidiaries located in low-tax countries to shelter passive investment income from home taxation. While passive investments make up a significant fraction of German outbound FDI, we find that German CFC rules...

By granting intracompany loans to their foreign affiliates, multinational firms may reduce their tax liability abroad. Many countries have legislated thin-capitalization rules (TCRs) that limit the allowable levels of intracompany loans or restrict interest deductibility if certain thresholds...

In this study, we estimate the impacts of differences in international tax rates on the probability of choosing a location for an affiliate of a multinational firm. In particular, we distinguish between the tax sensitivity of Greenfield and M&A investments. Based on a novel firm-level dataset on...

This paper provides empirical evidence on two potential costs of shared ownership of German affiliates abroad. First, in periods of currency crises, wholly-owned affiliates, in contrast to partially-owned affiliates, seem to circumvent financial constraints by accessing capital from their parent...

Seit langem wächst der Welthandel deutlich stärker als das Weltsozialprodukt. Ein zunehmender Teil dieses Handels besteht dabei aus dem Austausch von Dienstleistungen. Auch die Direktinvestitionen, durch die ausländische Investoren in den jeweiligen Zielländern Unternehmen gründen,...

This paper discusses the reasons for the dismal labor market performance of Germany over the last three decades along with potential remedies. It argues that labor market rigidities along with a generous welfare state in conjunction with certain changes in the economic environment are important...

The paper argues that the weakest link principle, which has been widely used as a measure of ultimate owners' control rights, has a number of serious problems. A theoretically more satisfactory method of measuring control rights, based on voting power indices, is proposed, and the different...

Der Finanzwissenschaftliche Ausschuss des Vereins für Socialpolitik hat in seiner Arbeitstagung 2001 die finanzpolitischen Ansatzpunkte zur Behebung von Arbeitsmarktproblemen diskutiert. Der Tagungsband enthält die drei Grundsatzreferate von Axel Börsch-Supan (Universität Mannheim),...