transmission of shocks. Under binding borrowing limits, there is a link between the international investment positions of …

business income to tax authorities, we show that a fall in the tax rate may increase investment in risky entrepreneurial … due to tax avoidance or evasion, but increase investment in private businesses that are also worthwhile in the absence of … business equity at the intensive margin, but decrease entrepreneurial investment at the extensive margin. To test these …

associated with an increase in the allocation of portfolio equity and banking investment to that country. However, it does not … show significant effects on the allocation of foreign direct investment and portfolio debt. Our findings are not driven by …