We evaluate the 2017 Tax Cuts and Jobs Act. Combining reduced-form estimates from tax data with a global investment model, we estimate responses, identify parameters, and conduct counterfactuals. Domestic investment of firms with the mean tax change increases 20% versus a no-change baseline. Due...

This paper studies whether tax policies in developed nations affect developing economies through cross-border investments by multinational firms. We study firm investment responses to a major U.K. tax reform that drastically reduced the income tax burden for U.K.-based firms. Our identification...

The idea that a global minimum corporate income tax rate should be introduced has been publicized with great fanfare. Not as widely publicized is the fact that this, along with the other provisions of Pillar Two, has negative implications for the corporate income tax policies currently...

This study examines whether U.S. effective tax rates on foreign income of U.S. multinationals (MNCs) vary according to the favorability of U.S. macroeconomic conditions relative to those of non-U.S. countries. We use the pre-Tax Cuts and Jobs Act of 2017 regime as our setting and present...

This paper studies the effects of globalization on the ability of governments to generate tax revenues for the financing of national welfare states. In this context, it summarizes the theoretical predictions of various economic models of tax competition between countries and discusses the role...

Tax incentives are a key component of governments’ investment policy mix as they directly impact companies’ tax burden. In this paper, we illustrate the EU’s tax attractiveness as investment location over time in terms of effective average tax rates and evaluate potential tax reform...

This article discusses an important phenomenon in the European Union governance. This is a difference between a political spectrum of a particular EU Member State at the EU level and at the national level of that Member State.The work pleads for the necessity of an effective coupling between the...

In the broad context of responsible management, and corporate responsibility, the present paper studies the general issue of conflicts between private investors, and governments, with a particular focus on the investor-state dispute settlement through international arbitration. On the grounds of...

This paper examines whether the profit-shifting trend in Europe during 2003–2013 can be explained by tax policy changes. Consistent with prior literature, we find that affiliates' profits are sensitive to tax rate changes. However, we document that tax base–broadening reforms have mitigated...

The aim of this paper is to discuss new trends that have occurred in the policies of the EU and China towards foreign direct investment (FDI), to examine some implications of the EU-China Comprehensive Agreement on Investment (CAI) - which is currently being negotiated - for their bilateral...