answers and can be used to estimate market power and pass through rates. I show that even a naive one-sided model that ignores …

-tax country induces bunching. Such bunching promotes investment incentives in the low-tax as well as the high-tax country. In … equilibrium, affiliates might over-invest and the bunching-related investment effects generate a tendency for too high profit … investment incentives and transfer pricing induces inefficiently low taxes. …

subsidies. -- Labor taxation ; human capital investment ; education subsidies ; idiosyncratic risk ; risk properties of human …

multinational enterprise regarding the cross border distribution of its investment and the choice of its financing behavior. We … start with a world where no international tax rules are at work. Then we successively introduce (i) the rules provided by …