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| Pauwels, Wilfried; Weverbergh, Marcel. |
| In this paper we analyze the optimal regulation of an internationally integrated monopolist, producing in one country and selling in another country. The monopolists pricing policy is constrained by transfer pricing regulations, and is subject to different tax rates on profits in the two countries. The governments of the two countries can use their tax rates as regulatory instruments, and they also determine an arms length interval of acceptable transfer prices. The two governments can cooperate in order to maximize world welfare, or they can each try to maximize their own country welfare. It is shown that in several of the solutions governments apply a golden rule. This rule requires that the firm realizes all profits in the manufacturing country, while... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Transfer pricing; Welfare analysis; Political Economy; F13; K2; C72. |
| Ano: 2005 |
URL: http://purl.umn.edu/24170 |
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| Fischer, Carolyn. |
| Many studies have shown that the activities of multinational corporations are quite sensitive to differences in income tax rates across countries. In this paper I explore the interaction between multinational taxation and abatement activities under an international emissions permit trading scheme. Four types of plans are considered: (1) a single domestic permit system with international offsets; (2) separate national permit systems without trade; (3) separate national permit systems with limited offsets; and (4) an international permit trading system. For each plan, I model the incentives for the multinational firm to choose abatement activities at home and abroad and to transfer emissions credits between parent and subsidiary. Limits on trading across... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Emission permits; Transfer pricing; Taxation; Multinational corporations; Environmental Economics and Policy; Public Economics; H2; F2; Q2. |
| Ano: 2001 |
URL: http://purl.umn.edu/10816 |
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