This paper analytically derives the conditions under which the slope of the tax reaction function is negative in a classical tax competition model. If countries maximize welfare, we show that a negative slope (reflecting strategic substitutability) occurs under relatively mild conditions....

In the absence of financial frictions, the purpose of thin capitalization rules is to limit multinational firms’ possibilities of engaging in tax planning via debt shifting. This paper analyzes the effects of thin capitalization rules in the case where firms have limited access to external...

This article analysis the concept of fiscal pressure and fiscal optimum. A comparative study of the fiscal pressure between Romania and the other EU member states has also been made. The academic literature analyzes the specific problem of the fiscal pressure from all points of view and the...

This paper conducts a literature survey on Foreign Direct Investment (FDI) and its relation to fiscal policy. Geographical and cultural proximity between originating and host countries, market size of the host countries, as well as other exogenous variables have been pointed out by a significant...

This study empirically investigates whether the tax differentials between home and host countries differently affect multinationals' foreign investment and profit shifting decisions under contrasting international tax systems. In particular,we compare these differential tax effects between...

A mezőgazdasági piacok működésébe a világ szinte minden országában közvetlen módon beavatkoznak. Az elmélet szerint a mezőgazdasági intervenciók hátterében az agrárszektor sajátos piaci kudarcai állnak: a jövedelemdiszparitás, az instabilitás és a mezőgazdasági...

A támogatáspolitika az agrárpolitika egyik, az agrárpolitika többi összetevőjéhez szorosan kapcsolódó, az agrárágazat hatékony működését megalapozó eleme. Az adott helyzetben a támogatáspolitika a fejlett ipari országokban szokásos jól szervezett, a piacgazdaság...

Advance pricing agreements (APAs) determine transfer prices for intra-firm transactions in advance. This paper interprets these contracts as a means to overcome a hold-up problem that occurs because governments cannot commit to non-excessive future tax rates. In addition, with private...

Advance pricing agreements (APAs) determine transfer prices for intra-fi?rm transactions in advance. This paper interprets these contracts as a means to overcome a hold-up problem that occurs because governments cannot commit to non-excessive future tax rates. In addition, with private...

This article aims to analyze the link between subsidiary capital structure and taxation in Europe. First we introduce a trade-off model, which looks at a MNC’s financial strategy and in particular debt shifting from low-tax to high-tax jurisdictions. By letting the MNC choose both leverage and...