| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP7382 |
| DP7382 Mitigating the Procyclicality of Basel II | |
| Rafael Repullo; Jesús Saurina; Carlos Trucharte | |
| 发表日期 | 2009-07-26 |
| 出版年 | 2009 |
| 语种 | 英语 |
| 摘要 | To prevent profit shifting by manipulation of transfer prices, tax authorities typically apply the arm's length principle in corporate taxation and use comparable market prices to `correctly' assess the value of intracompany trade and royalty income of multinationals. We develop a model of heterogeneous firms subject to financing frictions and offshoring of intermediate inputs. We find that arm's length prices systematically differ from independent party prices. Application of the principle thus distorts multinational activity by reducing debt capacity and investment of foreign affiliates, and by distorting organizational choice between direct investment and outsourcing. Although it raises tax revenue and welfare in the headquarter country, welfare losses are larger in the subsidiary location, leading to a first order loss in world welfare. |
| 主题 | International Trade and Regional Economics ; Public Economics |
| 关键词 | Arm's length principle Corporate finance Corporate tax Foreign direct investment Outsourcing Transfer prices |
| URL | https://cepr.org/publications/dp7382 |
| 来源智库 | Centre for Economic Policy Research (United Kingdom) |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/536219 |
| 推荐引用方式 GB/T 7714 | Rafael Repullo,Jesús Saurina,Carlos Trucharte. DP7382 Mitigating the Procyclicality of Basel II. 2009. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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