Productive and Unproductive Reactions of MNEs to International Tax Differentials

Beer, Sebastian (2015) Productive and Unproductive Reactions of MNEs to International Tax Differentials. WU International Taxation Research Paper Series, 2015-19. WU Vienna University of Economics and Business, Universität Wien, Vienna.


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I provide initial evidence that international taxation impacts the magnitude of R&D investments in the UK. Relying on a simple theoretical model, I show that the observed response is consistent with the mispricing of intra-group transactions. My structural estimates suggest that transfer prices for internally provided innovation increase by around three percent in response to a one percentage point increase in foreign taxation. This response is more pronounced than previous estimates of aggregate profit shifting indicate, supporting concerns on the susceptibility of intangible assets to facilitate profit relocation. (author's abstract)

Item Type: Paper
Additional Information: Editors: Eva Eberhartinger, Michael Lang, Rupert Sausgruber and Martin Zagler (Vienna University of Economics and Business), and Erich Kirchler (University of Vienna)
Keywords: UK / Mulitnationales Unternehmen / Besteuerung / Steuerbelastung / Transferpreis / Forschungsinvestitionen / Mathematisches Modell
Classification Codes: RVK QL 830, QP 210, QP 800
Divisions: Departments > Öffentliches Recht und Steuerrecht > Österr. und Internat. Steuerrecht
Depositing User: Elena Simukovic
Date Deposited: 09 Jun 2015 15:21
Last Modified: 22 Oct 2019 00:41
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