Showing 1 - 10 of 13
This paper introduces an index of tax optimality that measures the distance of some current tax structure from the optimal tax structure in the presence of public goods. In doing so, we derive a [0, 1] number that reveals immediately how far the current tax configuration is from the optimal one...
Persistent link: https://www.econbiz.de/10012142281
This paper examines the welfare implications of non-discriminatory tariff reforms by a subset of countries, which we term a non-preferential trading club. We show that there exist coordinated tariff reforms, accompanied by appropriate income transfers between the member countries, that...
Persistent link: https://www.econbiz.de/10012142282
Persistent link: https://www.econbiz.de/10012432321
Persistent link: https://www.econbiz.de/10015386866
Persistent link: https://www.econbiz.de/10014458561
Why do donor countries give foreign aid? The answers found in the literature are: (i) because donor countries care for recipient countries (e.g. altruism), and/or (ii) because there exist distortions that make the indirect gains from foreign aid (e.g. terms of trade effects) to be larger than...
Persistent link: https://www.econbiz.de/10012142216
This paper demonstrates that under conditions of imperfect (oligopolistic) competition, a transition from separate accounting (SA) to formula apportionment (FA) does not eliminate the problem of profit shifting via transfer pricing. In particular, if affiliates of a multination firm face...
Persistent link: https://www.econbiz.de/10012142241
Persistent link: https://www.econbiz.de/10012142290
The paper examines how country tax differences affect a multinational enterprise's choice to centralize or de-centralize its decision structure. Within a simple model that emphasizes the multiple conflicting roles of transfer prices in MNEs – here, as a strategic pre-commitment device and a...
Persistent link: https://www.econbiz.de/10012142304
We show that the standard concertina result for tariff reforms – i.e. lowering the highest tariff increases welfare – no longer holds in general if we allow for international capital mobility. The result can break down if the good whose tariff is lowered is not capital intensive. If the...
Persistent link: https://www.econbiz.de/10012142323