differentials between US multinational corporations (MNCs) and their European peers. We show that statutory tax rates and profit … evidence for heterogeneity in firm responses: MNCs with profit shifting opportunities benefit most from more-lenient CFC rules …

characteristics such as profit tax rates, lack of institutional quality, financial underdevelopment, and productivity for internal … one hand and higher profit tax rates on the other hand, and the strength of this trade-off depends on the characteristics …

double taxation treaties (DTTs) and corporate profit taxes on the probability to choose a location. DTTs have become a key …

understand the profit-shifting behavior of multinational enterprises (MNEs) and its consequences for real activity. Using new … estimate an unbiased profit-shifting semi-elasticity of about 0.22. Removing incentives to shift profits to particular low …-tax locations leads to profit relocation to ‘next-best’ low-tax countries, allowing firms to circumvent domestic taxation. We do not …