Against the background of increased globalization statutory corporate tax rates have shown a clear downward trend over the last two decades. The sharp decline in these rates was accompanied by substantial tax base broadening and a comparable reduction in personal income tax rates only until the...

This paper presents evidence of profit shifting in response to differences in corporate tax rates for a large selection of OECD countries. In our estimates we control for the effects of tax rate changes on real activity. Our baseline estimates suggest that, on average, a unilateral increase in...

This paper assesses the impact of corporate taxation on multinational activity. A numerically solvable general equilibrium model of trade and multinational firms is used to incorporate the following components of corporate taxation: parent and host country statutory corporate tax rates,...

Measuring effective tax rates using tax revenue data is attractive, given that revenues collected capture the net effect of tax provisions and taxpayer behaviour that are difficult to model. Yet reliance on aggregate tax and income data requires restrictive assumptions and significantly limits...

This study compares incentive effects of various tax depreciation methods which are currently employed in selected OECD countries. Their generosity is determined on the basis of Samuelson's true economic depreciation. For this purpose, the present value model is applied. The central issue is...