In recent years, differences between traditional and green parties have been leveled with respect to climate protection. We show that this partial convergence in party platforms can be explained by international climate agreements, effectively reducing greenhouse gas emissions. We set up a...

Many subsidiaries can deduct interest payments on internal debt from their taxable income. By issuing internal debt from a tax haven, multinationals can shift income out of host countries through the interest rates they charge and the amount of internal debt they issue. We show that, from a...

There is a growing concern that governments lose substantial corporate tax revenue because of profit shifting through transfer-pricing and thin-capitalization strategies. Existing literature studies profit shifting and transfer pricing separately. In practice, the choice of debt-to-asset ratios...

In einem Ein-Perioden-Modell werden die Auswirkungen des deutschen Steuerrechts zur Kapitalbesteuerung auf das Kapitalmarktgleichgewicht untersucht. Dabei modellieren wir sowohl einen Unternehmenssektor, der der Körperschaftsteuer unterliegt, als auch Privatinvestoren, die...

Should the realized risk premium be taxed – or not? In a simple two asset portfolio model we analyze the optimal taxation rule when the economy faces aggregate risk. We show in an appropriate designed tax system, that the risk premium of the risky asset should be fully taxed if the households...

We show in a two-period world with endogenous savings and two assets, one of them exhibiting a stochastic return that an interest adjusted income tax is optimal. This tax leaves a safe component of interest income tax free and taxes the excess return with a special tax rate. There is no trade...

Dieses Papier untersucht die Ausgestaltung der deutschen Einkommensteuer und die neuen Regelungen der letzten Steuerreformen (1999, 2000) hinsichtlich ihrer Wirkungen auf das zu Grunde liegende Besteuerungssystem. Es wird gezeigt, daß die umfassende Einkommensermittlung bei Privatpersonen nur...

Multinational companies can exploit the tax advantage of debt more aggressively than national companies. Besides utilizing the standard debt tax shield, multinationals can shift debt from affiliates in low-tax countries to affiliates in high-tax countries. We study the capital structure of...

Some multinationals use the parent company as a lender to the group, whereas others set up an internal bank in a low tax jurisdiction. This paper discusses the link between capital structure choices and tax planning motives in multinational groups. We model the trade-off between the use of...

The increasing use of intellectual property as a means to shift profits to low-tax jurisdictions or jurisdictions with so-called `patent boxes' is a major challenge for the corporate tax base of medium- and high-tax countries. Extending a standard tax competition model for capital-enhancing...