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 … depreciation deductions. We apply our method to German data and find that even small estimation biases in determining the tax …

A widespread objection to the introduction of consumption tax systems claims that this would lead to high tax revenue … losses. This paper investigates the revenue effects of a consumption tax reform in Germany. Our results suggest that the … find a tax revenue gain. This implies that the current tax system collects little revenue from taxing the normal return 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 … understanding recent tax policy developments in many OECD countries. …

Does the reduction of the effective tax burden on corporations trigger foreign direct investment? We take the German … tax reform of 2000 as a natural experiment in order to isolate the impact of corporate taxation on the investment of … we deliberately choose an approach which is likely to underestimate the tax effects on investment we find significant …

In this paper we ask whether recent claims that the US government should switch from the tax credit system to the … investment. In all other cases the deduction system is no longer optimal from a national perspective and the foreign tax credit … system fails to ensure neutrality. However, the desirability of the tax exemption system has to be qualified. We show that …

direct investment flows. High-tax countries may see their tax revenues decrease in response to inbound foreign direct … shifting. Observed profitability differences between high and low tax countries may be due to project selection. Empirical … evidence in support of the main hypotheses is provided using aggregate investment and tax revenue data from a sample of OECD …

In this paper, we analyze tax competition in a model where investor firms have the choice between two types of … intensifies tax competition in comparison to the case where there is only greenfield investment. If a specific tax on acquisitions … is available, this result changes. Then, tax competition is mitigated compared to the pure greenfield case. The existence …

reduction of the firm’s domestic activities. As it is often argued, this finding may imply that a country should not tax … exports or FDI. If a firm switches from exporting to FDI, domestic activity and tax payments may decrease, stay constant or … even rise due to intra-firm trade. It turns out that, in all three cases, the optimal tax system implies full taxation …