This paper explores the economic consequences of proposed EU reforms for a common consolidated corporate tax base. The reforms replace separate accounting with formula apportionment as a way to allocate corporate tax bases across countries. To assess the economic implications, we use a...

We assess the quantitative impact of two reforms of the corporation tax that would eliminate the differential treatment of debt and equity. The two reforms are: the allowance for corporate equity (ACE), and the comprehensive business income tax (CBIT). We investigate the impact of these reforms...

This article assesses the economic implications of the introduction of consolidation with formula apportionment in the European Union under alternative enhanced cooperation agreements. We find that the consolidation is likely to yield a small aggregate welfare gain in Europe, but that not all...

In a financial crisis, an initial shock gets amplified while it propagates to other financial intermediaries, ultimately disrupting the financial sector. We review the literature on such amplification mechanisms, which create externalities from risk taking. We distinguish between two classes of...

Both school level and individual student level data indicate that information on highschool quality published by a national newspaper affects school choice in the Netherlands. The positive effects are particularly large for the academic school track. First, we study the causal effect of...

As from 1997, the national newspaper Trouw has published quality scores of secondary schools in every year, using information of the schools inspectorate on, amongst other things, the average grades at the final examinations and the throughput of pupils in lower forms. How do schools respond to...

Even though the Netherlands was the world’s sixth largest exporter in 2009, the majority of Dutch firms does not engage in international trade at all, possibly because they are unable to cover the costs to enter specific foreign markets. What are these costs that limited the...

Collective funded pension schemes with defined benefits (DB) raise welfare through intergenerational risk sharing, but may lower welfare through distortion of the labour-leisure decision. This paper compares the welfare gains with the welfare losses. In many countries, collective funded pension...

This paper analyzes the dynamic adjustment of the terms of trade in an intertemporal, two country model with endogenous product variety. In the base model, all workers are identical. In an extended version, the development of new varieties requires skilled labor while manufacturing uses...

This study presents recently available data on the microstructure of Dutch exports and the relation between export participation and productivity at the firrm and establishment-level. We test whether recent theories of international trade with heterogeneous firms can explain the patterns in the...