Profit Shifting and Tax‐rate Uncertainty
Manthos D. Delis, Iftekhar Hasan, Panagiotis I. Karavitis
Journal of Business Finance and Accounting,
5-6
2020
Abstract
Using firm‐level data for 1,084 parent firms in 24 countries and for 9,497 subsidiaries in 54 countries, we show that tax‐motivated profit shifting is larger among subsidiaries in countries that have stable corporate tax rates over time. Our findings further suggest that firms move away from transfer pricing and toward intragroup debt shifting that has lower adjustment costs. Our results are robust to several identification methods and respecifications, and they highlight the important role of tax‐rate uncertainty in the profit‐shifting decision while pointing to an adjustment away from more costly transfer pricing and toward debt shifting.
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The Effects of Graduating from High School in a Recession: College Investments, Skill Formation, and Labor-Market Outcomes
Franziska Hampf, Marc Piopiunik, Simon Wiederhold
CESifo Working Paper,
Nr. 8252,
2020
Abstract
We investigate the short- and long-term effects of economic conditions at high-school graduation as a source of exogenous variation in the labor-market opportunities of potential college entrants. Exploiting business cycle fluctuations across birth cohorts for 28 developed countries, we find that bad economic conditions at high-school graduation increase college enrollment and graduation. They also affect outcomes in later life, increasing cognitive skills and improving labor-market success. Outcomes are affected only by the economic conditions at high-school graduation, but not by those during earlier or later years. Recessions at high-school graduation narrow the gender gaps in numeracy skills and labor-market success.
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R&D Cooperation with Scientific Institutions: A Difference-in-difference Approach
Gunnar Pippel, V. Seefeld
Economics of Innovation and New Technology,
Nr. 5,
2016
Abstract
Economists and business managers have long been interested in the impact of research and development (R&D) cooperation with scientific institutions on the innovation performance of firms. Recent research identifies a positive correlation between these two variables. This paper aims to contribute to the identification of the relationship between R&D cooperation with scientific institutions and the product and process innovation performance of firms by using a difference-in-difference approach. In doing so, we distinguish between two different types of scientific institutions: universities and governmental research institutes. For the econometric analyses, we use data from the German Community Innovation Survey. In total, data from up to 560 German service and manufacturing firms are available for the difference-in-difference analyses. The results suggest that R&D cooperation with universities and governmental research institutes has a positive effect on both product innovation and process innovation performance of firms.
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Returns to Skills around the World: Evidence from PIAAC
Eric A. Hanushek, Guido Schwerdt, Simon Wiederhold, Ludger Woessmann
European Economic Review,
January
2015
Abstract
Existing estimates of the labor-market returns to human capital give a distorted picture of the role of skills across different economies. International comparisons of earnings analyses rely almost exclusively on school attainment measures of human capital, and evidence incorporating direct measures of cognitive skills is mostly restricted to early-career workers in the United States. Analysis of the new PIAAC survey of adult skills over the full lifecycle in 23 countries shows that the focus on early-career earnings leads to underestimating the lifetime returns to skills by about one quarter. On average, a one-standard-deviation increase in numeracy skills is associated with an 18 percent wage increase among prime-age workers. But this masks considerable heterogeneity across countries. Eight countries, including all Nordic countries, have returns between 12 and 15 percent, while six are above 21 percent with the largest return being 28 percent in the United States. Estimates are remarkably robust to different earnings and skill measures, additional controls, and various subgroups. Instrumental-variable models that use skill variation stemming from school attainment, parental education, or compulsory-schooling laws provide even higher estimates. Intriguingly, returns to skills are systematically lower in countries with higher union density, stricter employment protection, and larger public-sector shares.
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A Community College Instructor Like Me: Race and Ethnicity Interactions in the Classroom
Robert W. Fairlie, Florian Hoffmann, Philip Oreopoulos
American Economic Review,
Nr. 8,
2014
Abstract
Administrative data from a large and diverse community college are used to examine if underrepresented minority students benefit from taking courses with underrepresented minority instructors. To identify racial interactions we estimate models that include both student and classroom fixed effects and focus on students with limited choice in courses. We find that the performance gap in terms of class dropout rates and grade performance between white and underrepresented minority students falls by 20 to 50 percent when taught by an underrepresented minority instructor. We also find these interactions affect longer term outcomes such as subsequent course selection, retention, and degree completion.
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Drittmittel
Mirko Titze
Peer Pasternack (ed.), Regional gekoppelte Hochschulen. Die Potenziale von Forschung und Lehre für demografisch herausgeforderte Regionen. Institut für Hochschulforschung (HoF): Wittenberg,
2013
Abstract
Der Umfang der Forschungs- und Transferfunktion von Hochschulen lässt sich über die Drittmittelquote messen. Hierbei werden die Drittmitteleinnahmen ins Verhältnis zu den Gesamtausgaben gesetzt. Der Beitrag vergleicht die Entwicklung der Drittmittelquoten in ost- und westdeutschen Regionen im Zeitraum von 2002 bis 2010.
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Wie können sich Hochschulen in stärkerem Ausmaß selbst finanzieren? – Das Beispiel Sachsen-Anhalt –
Peter Franz
Wirtschaft im Wandel,
Nr. 5,
2012
Abstract
Hochschulen gewinnen in einer heraufziehenden Wissensgesellschaft zwar stetig an Bedeutung, sehen sich aber gerade in finanzschwachen Ländern wiederholt mit Unsicherheiten ihrer Finanzierung konfrontiert. Unter diesem Aspekt erweitert der Wandel von der „administrierten“ zur „unternehmerischen Hochschule“ jedoch die
Handlungsspielräume der Hochschulen für eine höhere Selbstfinanzierung. In der vorliegenden Studie wird eruiert, welche neuen Einnahmepotenziale sich den Hochschulen durch diesen Wandel erschließen und welche strategischen Optionen zu einer Einnahmeverbesserung führen könnten. Die Analyse erfolgt am Beispiel der Hochschullandschaft Sachsen-Anhalts, einem Land, das bei schrumpfender Einwohnerzahl und sich verringernden finanziellen Spielräumen vergleichsweise viele Finanzmittel für Hochschulen ausgibt und mit einer wachsenden Zahl von Studierenden konfrontiert ist.
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MNE’s Regional Location Choice - A Comparative Perspective on East Germany, the Czech Republic and Poland
Andrea Gauselmann, Philipp Marek, J. P. Angenendt
IWH Discussion Papers,
Nr. 8,
2011
publiziert in: Empirica
Abstract
The focus of this article is the empirical identification of factors influencing Foreign Direct Investment (FDI) in transition economies on a regional level (NUTS 2). The analysis is designed as benchmark between three neighboring post-communist regions, i.e. East Germany, the Czech Republic and Poland. Their different transition paths have not only resulted in economic differences. We can also observe today that the importance of pull factors for FDI varies significantly across the regions. This analysis shows that in comparison with Poland and the Czech Republic, East Germany’s major benefit is its purchasing power, its geographical proximity to West European markets, and its modern infrastructure. Furthermore, the analysis suggests that intra-industry linkages such as specialization and agglomeration economies are relevant factors for the location decision of foreign investors. This result can help to explain the regional divergence of FDI streams in transition economies.
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On the Economics of Ex-Post Transfers in a Federal State: A Mechanism Design Approach
Martin Altemeyer-Bartscher, T. Kuhn
WWDP, 95,
Nr. 95,
2008
Abstract
As a common feature in many federal states grants-in aid are payed to jurisdictions ex post, i.e. after local policy measures have chosen. We show that the central government cannot offer grants ex ante in a federal states with informational asymmetries as well as inter-temporal commitment problems. Local governments’ incentives to provide public goods are distorted if they rely on federal grants-in-aid offered ex post. Furthermore it becomes obvious that local governments are apt to substitute tax revenue for higher grants-in-aid if relevant local data are unobservable for the central government. To which extend ex post transfers mitigate local governments’ incentives crucially depends on the information structure predominant in the federation.
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Determinants of Female Migration – The Case of German NUTS 3 Regions
Alexander Kubis, Lutz Schneider
IWH Discussion Papers,
Nr. 12,
2007
Abstract
Our study examines the regional patterns and determinants of migration flows of young women. At the NUTS-3 regional level, i.e. the district level (Kreise), the German internal migration flows of the year 2005 are explored. From descriptive statistics it can be seen that peripheral regions in East Germany face the strongest migration deficit with respect to young women, whereas agglomerations in West Germany but also in the East benefit from an intense migration surplus within this group. An econometric analysis of determinants of regional migration flows gives evidence of the importance of labour market, family-related and educational migration motives. Generally speaking, young women tend to choose regions with good income and job opportunities, in addition they seem to be attracted by regions enabling an appropriate balance between family and career. Furthermore the existence of excellent educational facilities is a significant influence for young women’s migration. This educationally motivated type of migration generates a long lasting effect on the regional migration balance, especially when the educational opportunities in the destination region are associated with adequate career perspectives for high qualified female graduates. In view of considerable losses due to migration, the study shows various options for action. An important course of action is to incorporate policy measures improving regional employment and income opportunities. Secondly, extending vocational and academic offers addressed to women seems to be a suitable way to stimulate women’s immigration. Moreover, enhancing the social infrastructure, which contributes to a satisfactory work life balance, might attract young women or at least reduce the number of them leaving a region.
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