This paper empirically analyzes companies' capital structure and dividend decisions under distributed profit taxation (DPT), Estonia's corporate taxation regime since 2000. The sample covers 26,000 observations of Estonian companies from 1995 to 2004. The results show that the DPT system has led...

This paper reviews the rationales and facts about corporate tax coordination in Europe. Although statutory tax rates have dramatically declined, revenues collected from corporate taxation are fairly stable and there is so far no evidence of a race-to-the-bottom. The ambiguous results from...

This study explains the variation in empirical estimates in the literature on the elasticity of foreign direct investment with respect to company tax levels. To that end, the meta analysis of De Mooij and Ederveen (2003) is extended by considering an alternative classification of the literature...

If conventional instruments of strategic trade policy are unavailable, the system of foreign profit taxation and transfer price guidelines may serve as surrogate policy instruments. In this paper, I consider a model where firms from two countries compete with each other on a third market. I...

This paper studies corporate tax competition if it is costly to learn some of the elements that determine the effective tax burden. Search cost may, but need not, eliminate the tax competition pressure. The outcome depends on the boundaries of tax rate and tax base choices. Search cost can...

Compiled AEI essays address all major aspects of the Reagan economic program.

This paper analyses the relationship between corporate taxes and exports at firm level in Italy. We use an integrated dataset that combines for the period 2004-2006 survey data (Indagine sulle Imprese Manifatturiere) on enterprises and company accounts for the manufacturing sector to estimate a...

We present a new model of tax induced transfer pricing as an alterna- tive to the oft-used concealment model. Inspired by interviews with practi- tioners, we consider a large multinational firm which is audited by the tax authority in the high-tax location. When this country adjusts the transfer...