Full movement from the destination principle to the origin principle would lead to changes in VAT revenues in EU countries. Hence a clearing mechanism is necessary to rectify such imbalances. To estimate the relevance of VAT evasion this study quantifies the annual amounts of hypothetical VAT...

This essay critically revisits the roles and influences of tax havens in the world economy. It combines various messages of available studies in one scheme, and uses various data sources to document regularities regarding multinational firms, financial assets, and other relevant information for...

This paper contributes to the literature providing indirect evidence for profit shifting within multinational companies. In contrast to the previous studies, we take account of the tax responsiveness of the capital stock and analyze the effect of corporate taxes on both pre- and posttax...

There is no consistent notion of country size in the literature on the voluntary provision of an international public good. This paper suggests preference-adjusted GNP as a useful index of size. Defining a country s size in that manner, contributing countries are unambiguously larger than free...

This paper reviews the recent theoretical literature that analyzes the European Union's policy to eliminate preferential corporate-tax regimes and the proposal to introduce a consolidated EU tax base with formula apportionment for the taxation of multinational firms. Since neither proposal...

This paper examines the impact of three host country government policies (taxation, good governance, and infrastructure) on the host's FDI stock. We focus on whether the impact of these factors differs depending on the level of development of the host country. The regression results indicate...

This paper provides an analytical framework to study fiscal competition between two countries when the strategic instrument is the payroll tax raised to finance unemployment benefits. Each country's production sector uses immobile skilled and mobile unskilled workers. Unemployment arises as a...

This paper analyses non-cooperative provision of public consumption goods and public production factors. Contrary to previous literature, a number of situations is identified where public consumption goods are oversupplied and public production factors are undersupplied. With source and...

In Germany, medium-term financial planning (Mifrifi) was introduced at the end of the sixties. This study scrutinizes the German federal government's experience of more than thirty years of financial planning. The paper begins by exploring the potential normative and political-economic driving...

We analyze the welfare consequences of tax coordination agreements that cover taxes on mobile capital and on immobile labor. In doing so, we take into account two important institutional details. First, we incorporate decentralized wage bargaining, giving rise to involuntary unemployment....