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dc.contributor.author
Köthenbürger, Marko
dc.contributor.author
Mardan, Mohammed
dc.contributor.author
Stimmelmayr, Michael
dc.date.accessioned
2019-02-26T12:10:43Z
dc.date.available
2019-01-22T17:09:20Z
dc.date.available
2019-02-26T12:10:43Z
dc.date.issued
2018-02
dc.identifier.issn
2364-1428
dc.identifier.issn
1617-9595
dc.identifier.uri
http://hdl.handle.net/20.500.11850/318691
dc.description.abstract
Recent empirical research documents a tendency of affiliates of multinational enterprises to bunch around zero reported profit. Setting up a model that allows for profitable and loss-making affiliates of multinationals, we show that profit shifting to a low-tax country as well as a loss-related, inverted-type of transfer pricing from the low-tax to the high-tax country induces bunching. Such bunching promotes investment incentives in the low-tax as well as the high-tax country. In equilibrium, affiliates might over-invest and the bunching-related investment effects generate a tendency for too high profit taxes in equilibrium. The finding contrasts existing literature where transfer pricing incentives are insulated from investment incentives and transfer pricing induces inefficiently low taxes
en_US
dc.language.iso
en
en_US
dc.publisher
CESifo
en_US
dc.subject
tax competition, profit shifting, corporate losses, bunching, investment
en_US
dc.title
Profit Shifting and Investment Effects: The Implications of Zero-Taxable Profits
en_US
dc.type
Working Paper
ethz.journal.title
CESifo Working Papers
ethz.journal.volume
6895
en_US
ethz.size
44 p.
en_US
ethz.code.jel
JEL - JEL::H - Public Economics::H2 - Taxation, Subsidies, and Revenue::H25 - Business Taxes and Subsidies
en_US
ethz.code.jel
JEL - JEL::D - Microeconomics::D2 - Production and Organizations::D21 - Firm Behavior: Theory
en_US
ethz.code.jel
JEL - JEL::H - Public Economics::H8 - Miscellaneous Issues::H87 - International Fiscal Issues; International Public Goods
en_US
ethz.publication.place
Munich
en_US
ethz.publication.status
published
en_US
ethz.leitzahl
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02120 - Dep. Management, Technologie und Ökon. / Dep. of Management, Technology, and Ec.::03988 - Köthenbürger, Marko / Köthenbürger, Marko
en_US
ethz.leitzahl
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02120 - Dep. Management, Technologie und Ökon. / Dep. of Management, Technology, and Ec.::02525 - KOF Konjunkturforschungsstelle / KOF Swiss Economic Institute
en_US
ethz.leitzahl.certified
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02120 - Dep. Management, Technologie und Ökon. / Dep. of Management, Technology, and Ec.::03988 - Köthenbürger, Marko / Köthenbürger, Marko
en_US
ethz.leitzahl.certified
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02120 - Dep. Management, Technologie und Ökon. / Dep. of Management, Technology, and Ec.::02525 - KOF Konjunkturforschungsstelle / KOF Swiss Economic Institute
en_US
ethz.relation.isPreviousVersionOf
handle/20.500.11850/319010
ethz.date.deposited
2019-01-22T17:09:47Z
ethz.source
FORM
ethz.eth
yes
en_US
ethz.availability
Metadata only
en_US
ethz.rosetta.installDate
2019-02-26T12:11:45Z
ethz.rosetta.lastUpdated
2019-02-26T12:11:45Z
ethz.rosetta.exportRequired
false
ethz.rosetta.versionExported
true
ethz.COinS
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