Corporate Taxation, Profit Shifting, and the Efficiency of Public Input Provision

Andreas Haufler and Guttorm Schjelderup

FinanzArchiv: Public Finance Analysis, 1999, vol. 56, issue 3/4, 481-

Abstract: In this paper we analyze the implications for the national provision of public inputs when profit shifting is possible, albeit costly, for internationally integrated firms. In this case a high level of public infrastructure will attract real investment, but the firm can at least partly avoid to pay correspondingly high corporate taxes. In contrast to much of the recent literature on capital tax competition and public infrastructure provision, we thus find that public inputs will be unambiguously underprovided when the corporate tax falls only on pure profits and international taxation follows the source principle. Extensions of the basic model cover the case of distortive capital taxes and alternative international tax regimes.

Date: 1999
References: Add references at CitEc
Citations: View citations in EconPapers (13)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: Corporate Taxation, Profit Shifting, and the Efficiency of Public Input Provision (1999)
Working Paper: Corporate taxation, profit shifting, and the efficiency of public input provision (1999)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mhr:finarc:urn:sici:0015-2218(200007)56:3/4_481:ctpsat_2.0.tx_2-x

Ordering information: This journal article can be ordered from
Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany

Access Statistics for this article

FinanzArchiv: Public Finance Analysis is currently edited by Alfons Weichenrieder, Ronnie Schöb and Jean-François Tremblay

More articles in FinanzArchiv: Public Finance Analysis from Mohr Siebeck, Tübingen
Bibliographic data for series maintained by Thomas Wolpert ().