Documents de Travail du Centre d ’ Economie de la Sorbonne Heterogeneous Firms , “ Profit Shifting ” FDI and International Tax Competition

@inproceedings{KRAUTHEIM2009DocumentsDT,
  title={Documents de Travail du Centre d ’ Economie de la Sorbonne Heterogeneous Firms , “ Profit Shifting ” FDI and International Tax Competition},
  author={Sebastian KRAUTHEIM and Tim SCHMIDT-EISENLOHR},
  year={2009}
}
  • Sebastian KRAUTHEIM, Tim SCHMIDT-EISENLOHR
  • Published 2009
Larger firms are more likely to use tax haven operations to exploit international tax differences. We study a tax game between a large country and a tax haven modeling heterogeneous monopolistic firms, which can shift profits abroad. We show that a higher degree of firm heterogeneity (a mean-preserving spread of the cost distribution) increases the degree… CONTINUE READING