The impact of controlled foreign company legislation on real investments abroad. A multi-dimensional regression discontinuity design

• 成果类型: Article
• 署名作者: Egger, Peter H.; Wamser, Georg
• 署名单位: Swiss Federal Institutes of Technology Domain; ETH Zurich; Centre for Economic Policy Research - UK; Leibniz Association; Ifo Institut; University of Nottingham; University of Oxford; Eberhard Karls University of Tubingen
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2015.07.006
• 发表日期: 2015
• 页码: 77-91
• 关键词: CFC rule; regression discontinuity design; Tax avoidance; multinational firms; Micro-level data; Corporate profit tax

摘要

Controlled foreign company (CFC) rules are frequently imposed by countries as part of their anti-tax-avoidance legislation. This paper aims at quantifying the impact of the German CFC rule on the universe of foreign investments held by German multinational firms. The German CFC legislation gives rise to a multi-dimensional regression discontinuity design, which allows us to estimate local average treatment effects along the dimensions determining treatment. Our results suggest a significant and economically large impact of the CFC legislation on multinationals' real activity abroad. We also find evidence of some heterogeneity in estimated treatment effects according to parametric as well as nonparametric estimates. (C) 2015 Elsevier B.V. All rights reserved.