The paper considers profit shifting behavior using data on German inbound and outbound FDI. It finds an empirical correlation between the home country tax rate of a parent and the net of tax profitability of its German affiliate that is consistent with profit shifting behavior. For profitable...

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...

We examine the effect of large foreign earnings repatriations by U.S. multinational enterprises (MNEs) on employment. We show employment increased in geographic areas near the headquarters of MNEs that repatriated in connection with the American Jobs Creation Act of 2004. In addition to...