Recent empirical studies find that foreign direct investment (FDI) by a multinational firm is not associated with a reduction of the firm's domestic activities. As it is often argued, this finding may imply that a country should not tax the firm's foreign profit income since this reduces foreign...

This paper analyses tax competition and tax coordination in a model where capital flows occur in the form of mergers and acquisitions, rather than greenfield investment. In this framework, we show that differences in residence based taxes do not necessarily distort international ownership...

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...

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 foreign-held affiliates in Germany. We do so by exploiting the...

Recent empirical studies find that foreign direct investment (FDI) by a multinational firm is not associated with a reduction of the firm’s domestic activities. As it is often argued, this finding may imply that a country should not tax the firm’s foreign profit income since this reduces...

This paper analyses tax competition and tax coordination in a model where capital flows occur in the form of mergers and acquisitions, rather than greenfield investment. In this framework, we show that differences in residence based taxes do not necessarily distort international ownership...

This paper studies corporate taxation in a model where foreign investment of firms may affect the profitability of the investor firm's domestic activities. In this framework, corporate taxes distort the quality, not just the quantity of foreign direct investment flows. High-tax countries may see...

Unternehmen der digitalen Wirtschaft wie Google, Facebook, Amazon usw. sind in Europa allgegenwärtig, zahlen aber nur wenig Steuern. Die Finanzminister einiger wichtiger EUMitgliedstaaten haben deshalb eine umsatzbasierte Ausgleichsteuer auf Internetunternehmen vorgeschlagen. Ein solches...

Unternehmen der digitalen Wirtschaft wie Google, Facebook, Amazon usw. sind in Europa allgegenwärtig, zahlen aber nur wenig Steuern. Die Finanzminister einiger wichtiger EUMitgliedstaaten haben deshalb eine umsatzbasierte Ausgleichsteuer auf Internetunternehmen vorgeschlagen. Ein solches...