Multinational companies can use transfer pricing and thin capitalization (excess debt financing) to reduce the amount of taxes paid in each jurisdiction. Governments try to counteract these anti-avoidance strategies by using tax policy rules. Since the means reducing the both types of activities...

The traditional theory of international tax competition for production factors or any of its expansions give neither a satisfactory explanation of the problem that would find confirmation in empirical data nor normative solutions for the shape of the optimal tax system. It seems that such a...

It is claimed that tax policy is neither time- nor space-independent due to cross-border tax base mobility that induces spillovers. In other words, fiscal shocks in one country are supposed to have impact on fiscal policies in other countries. This paper verifies this question in two ways....