This paper provides an empirical analysis of the effects of new product versus process innovations on export propensity at the firm level. Product innovation is a key factor for successful market entry in models of creative destruction and Schumpeterian growth. Process innovation helps securing...

The paper empirically analyzes the incentive effects of equalizing transfers on business tax policy by exploiting a natural experiment in the state of Lower Saxony which changed its equalization formula as of 1999. We resort to within-state and across-state difference-indifference estimates to...

Most existing empirical evidence on the impact of profit taxation on multinational firm activity is based on cross-country data. One major drawback of such data is that countries differ not only with regard to taxes but along other dimensions which might be hard to capture by means of observable...

Österreich und Deutschland sind nicht nur Nachbarländer sondern auch in der Geschichte Mitteleuropas historisch eng verbunden - so sehr, daß Österreicher und Deutsche neben der gemeinsamen Sprache auch wichtige Grundüberzeugungen politischer, sozialer und kultureller Art teilen. Trotzdem...

This paper presents empirical evidence of a positive effect of council size on government spending using a data set of 2,056 municipalities in the German state of Bavaria over a period of 21 years. We apply a regression discontinuity design to avoid an endogeneity bias. In particular, we exploit...

Österreich und Deutschland sind nicht nur Nachbarländer sondern auch in der Geschichte Mitteleuropas historisch eng verbunden - so sehr, daß Österreicher und Deutsche neben der gemeinsamen Sprache auch wichtige Grundüberzeugungen politischer, sozialer und kultureller Art teilen. Trotzdem...

This paper develops a theoretical model of multinational firms with an internal capital market. Main reasons for the emergence of such a market are tax avoidance through debt shifting and the existence of institutional weaknesses and financial frictions across host countries. The model serves to...