In 2009, the United Kingdom abolished the taxation of profits earned abroad and introduced a territorial tax system. Under the territorial system, firms have strong incentives to shift profits abroad. Using a difference-in-differences research design, we show that profits of UK subsidiaries in...

This paper studies the effects of investment tax credits on firms’ input choices by exploitinga sudden shift in the tax credit rate by firm size for manufacturing firms in Germany in 1999. I find that more generous tax credits lead to a significant increase in both investment and employment,...

While the pandemic and recovery unfold in real time, this article investigates some of the major themes on preparations for the next pandemic. Humanity cannot rely on modern medicine to beat the next 'disease X' and the world cannot afford the extortionate health and economic policy...

The European Grouping of Territorial Cooperation (EGTC) is a European legal instrument designed to facilitate and promote cross-border, transnational and interregional cooperation. It was introduced in 2006 to enable public authorities of various Member States to team up and deliver joint...

Passing federal environmental policy reform is a challenge as the approval of interest groups such as consumers and state-level governments is often a prerequisite. Among others, the burden sharing's progressivity has a large impact on reform approval. We investigate how carbon tax payments by...

Using a natural experiment from Germany, we show that temporary place-based subsidies generate persistent effects on economic density. We identify employment and capital formation as main channels for higher income per square kilometer. As the spatial regression discontinuity design allows us to...

Since the 2009 financial crisis, some national governments have adopted anticyclical tax policies for recovering and economic growth. These policies can be different in terms of what type of tax incentive policy (income, labor, value added) is chosen as well if the strategy is vertical,...

Policy makers at all levels of government believe that one of the key drivers of local economic growth is new businesses. Therefore, governments design policy with the intention of attracting businesses with the hopes that this will create future growth in struggling areas. Over the past few...

We analyse the effect of public Research and Development (R&D) subsidies on private sector innovativeness for a cross-section of East German firms applying different matching estimations, which are primary based on an estimate of a propensity score. To do so, we use a until now unexplored...

A major issue of agriculture in Romania is to achieve the level of profitability of farms which ensures their economic viability. In this respect farms seek profitability of each product. The gross margin is a measure of profitability, which for the field crops is determined by the producer...