Profit Shifting in Two‐Sided Markets

Asymmetric Capital Tax Competition with Profit Shifting

This paper analyses capital tax competition between jurisdictions of different size when multinational firms can shift some fraction of their tax base between them. For the case of revenue maximizing governments, we show that introducing profit shifting will not generally increase downward pressure on tax rates. We find that profit shifting decreases the tax-base elasticity of the low tax juris...

The Corporate Governance of Profit Shifting

Profit Maximization in Perfectly Competitive Markets

EBITA (earnings before interest, taxes, and amortization of intangible assets) has increased at a compound annual rate of 26%. The Class A Common Stock price has grown in value at a compound annual rate of 27%. By effectively implementing our strategies and delivering value, we have achieved one of the strongest growth records in the publishing industry. How does a firm's optimal output choice ...

Economically Destabilizing Electric Power Markets for Profit

The deregulation of the electric industry in the United States opens the power market to competition. Buyers and sellers of electric power will be competing for limited resources. Although regulators will attempt to limit such activity, when large amounts of money are at stake, the participants have incentives to engage in destabilizing behavior. The goal of this study is to model agent driven ...

Profit Shifting opportunities, Multinationals, and the determinants of FDI

The theory of tax competition suggests that different tools might be used to attract physical capital and taxable profits. While it is assumed that FDI in real activity is deterred by high effective taxes, investment undertaken for purpose of profit-shifting is deterred by a higher statutory tax rate. Using information from the RWI-Database "Globalisation", which contains statistics about forei...