What are the macroeconomic effects of tax adjustments in response to large public debt shocks in highly integrated economies? The answer from standard closed-economy models is deceptive, because they underestimate the elasticity of capital tax revenues and ignore crosscountry spillovers of tax...

Europe's debt crisis casts doubt on the effectiveness of fiscal austerity in highly-integrated economies. Closed-economy models overestimate its effectiveness, because they underestimate tax-base elasticities and ignore cross-country tax externalities. In contrast, we study tax responses to debt...

Canada adopted IFRS in 2011 and firms were required to provide reconciliation from Canadian GAAP (CGAAP) to IFRS for the fiscal year before the adoption. We run a “horse race” of earnings quality between CGAAP and IFRS. Further, by making use of a natural experiment and a single country...

The global accounting convergence and the potential adoption of International Financial Reporting Standards (IFRS) by the U.S. is a timely topic. We contribute to the literature by examining a more recent mandatory IFRS adoption by U.S.'s largest trading partner, Canada. Canadian GAAP (CGAAP)...

What are the macroeconomic effects of tax adjustments in response to large public debt shocks in highly integrated economies? The answer from standard closed-economy models is deceptive, because they underestimate the elasticity of capital tax revenues and ignore cross-country spillovers of tax...