Forward looking measures like the well-known effective marginal tax rate developed by King and Fullerton (1984) are often criticized for not taking into account the complexity of the tax law. This paper derives a method of evaluating this kind of measure and of quantifying the bias resulting...

Forward-looking measures like the well-known effective marginal tax rate developed by King and Fullerton (1984) rely strongly on standardized assumptions on the effective use of depreciation deductions. This paper derives a method of assessing these assumptions empirically and of quantifying the...

Forward looking measures like the well-known effective marginal tax rate developed by King and Fullerton (1984) are often criticized for not taking into account the complexity of the tax law. This paper derives a method of evaluating this kind of measure and of quantifying the bias resulting...

If conventional instruments of strategic trade policy are unavailable, the system of foreign profit taxation and transfer price guidelines may serve as surrogate policy instruments. In this paper, I consider a model where firms from two countries compete with each other on a third market. I...

We analyze the optimal tax choices of a revenue-maximizing government that levies taxes from firms of which the true degree of mobility is ex ante unknown. Differential tax treatment of immobile and mobile firms is ruled out, but the government may learn from the firms' location responses to...

The standard tax theory result that investment should not be distorted is based on the assumption that profits are locally bound. In this paper we analyze the optimal tax policy when firms are internationally mobile. We show that the optimal policy response to increasing firm mobility may be...

Die Reform der Unternehmensbesteuerung verfolgt das Ziel, mehr Investitionen und Arbeitsplätze in Deutschland zu halten und die Verlagerung von Buchgewinnen in Niedrigsteuerländer einzuschränken. Gleichzeitig sollen die Steueraufkommensverluste möglichst gering gehalten werden. Dieser...

The reform of the German corporate income tax aims at attracting investment and jobs to Germany and wants to reduce profit shifting to other countries. At the same time, the tax revenue losses are to be kept as low as possible. This article surveys the most important elements of the reform and...

Die Reform der Unternehmensbesteuerung verfolgt das Ziel, mehr Investitionen und Arbeitsplätze in Deutschland zu halten und die Verlagerung von Buchgewinnen in Niedrigsteuerländer einzuschränken. Gleichzeitig sollen die Steueraufkommensverluste möglichst gering gehalten werden. Dieser...

The predominant model of tax induced transfer pricing is based on the assumption that profit shifting is due to insufficient enforcement. However, evidence shows that the firms responsible for most profit shifting are also among the most frequently audited. We present an alternative model based...