
Open access
Datum
2019-01Typ
- Working Paper
ETH Bibliographie
yes
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Abstract
This paper examines the determinants and margins of profit shifting through transferpricing. We develop a theory model, where transfer pricing patterns are governed by a generalized concealment cost function (CCF). Our empirical analysis draws on micro-level data about transaction-level imports, firm-level characteristics, as well as tax differentials between regions in Switzerland and countries abroad. We find, both theoretically and empirically, that more productive multinational firms deviate less from the arms’ length price and trade lower quantities, compared to MNEs with lower productivity. Moreover, the decision of firms to engage in transfer pricing depends negatively on a fixed cost component in the CCF, as well as trade costs. The model allows us to estimate a theory-consistent concealment cost function, which can be used for counterfactual analysis. Mehr anzeigen
Persistenter Link
https://doi.org/10.3929/ethz-b-000322881Publikationsstatus
publishedZeitschrift / Serie
KOF Working PapersBand
Verlag
KOF Swiss Economic Institute, ETH ZurichThema
Multinational firms; Tax avoidance; Tax havens; Transfer pricingOrganisationseinheit
02525 - KOF Konjunkturforschungsstelle / KOF Swiss Economic Institute
03840 - Egger, Peter / Egger, Peter
Zugehörige Publikationen und Daten
Is new version of: http://hdl.handle.net/20.500.11850/320740
ETH Bibliographie
yes
Altmetrics