.S. regions and across Europe using a multivariate vector autoregression technique. The paper finds inflexible real wages in all … force to employment shocks is much greater in the United States compared to Europe. The strong labor force response in the … United States prevents any persistence in relative regional unemployment rates whereas the lack of mobility in Europe results …

Profit shifting by multinational enterprises-through manipulation of transfer prices of related-party trade, intragroup … and external balances. This paper approaches this question theoretically and empirically. In theory, profit shifting … profit shifting, but taking heterogeneity into account we find that both the real tax effect and mismeasurement strengthen …

separate accounting. It highlights major advantages, such as the elimination of profit shifting within multinational groups …

A growing empirical literature has documented significant profit shifting activities by multinationals. This paper … looks at the impact of such profit shifting on real activity and tax competition. Real activity can be affected as profit … affected, because a permissive attitude toward profit shifting can be seen as a selective tax reduction for multinationals …

indicates that a non-extreme shock, which comprises a decline in profitability and an increase in interest rates, is likely to …

Schemes of residual profit allocation (RPA) tax multinationals by allocating their 'routine' profits to countries in … which their activities take place and sharing their remaining 'residual' profit across countries on some formulaic basis …

, using local projections, the paper zooms in on shocks originating in the United States, Europe, and China. Our results …, Europe, and China reduces economic activity in the rest of the world, with the effects being mostly felt in Europe and the …