This paper investigates whether tax havens have an incentive to maintain low regulatory standards in order to attract black money activities. Using a new dataset on money laundering regulation, the results of this study show that tax haven and money laundering services coincide within the same...

Policy makers are increasingly concerned about the effect of taxes on foreign direct investment (FDI). This study shows that for U.S. multinationals – in line with the findings of the majority of previous studies – a reduction in host country tax rates corresponds with higher...

Hybrid systems are dynamical systems composed of components with discrete and continuous behavior. Some systems change their structure during simulation, or their components behavior is essentially changing. This “structural dynamics” can be described in some modeling languages but the...

How does international tax competition affect fiscal democracy? To what extent does it constrain the autonomy of democratic governments in choosing the level and structure of national taxation? While tax competition has not reduced the level of total taxation in OECD-22 countries, it has revenue...

Little is known on the effects of inheritances on the working behavior of heirs. Using panel data for Germany, we find behavioral responses that amount up to a 16% reduction in working hours for inheritances of one Mio Euro. For the majority of beneficiaries labor supply effects are, however,...

Discretionary fiscal policy can – owing to spillover effects – share characteristics of a public good, whenever some countries stabilize output, whereas others free ride and benefit from increasing import demand. Economic theory suggests that especially small countries and countries with...

This paper analyzes the opportunities of American multinationals to reallocate their profits into tax havens. In contrast to previous papers, a comprehensive look on the profit-shifting process is undertaken by proposing three different tests. Multinationals in high-tax countries have a lower...

The hypothesis of divided government is applied to the development of deficits in Germany. Since the party system is relatively stable, divided governments emerge not from coalitional governments, but rather from the bicameral structure of the country. Different majorities in the two chambers...