Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/78624
Authors: 
Heckemeyer, Jost H.
Overesch, Michael
Year of Publication: 
2013
Series/Report no.: 
ZEW Discussion Papers 13-045
Abstract: 
This paper provides a quantitative review of the empirical literature on profit-shifting behavior of multinational firms. We synthesize the evidence from 25 studies and find a substantial response of profit measures to international tax rate differentials. Accounting for misspecification biases by means of meta-regressions, we predict a tax semi-elasticity of subsidiary pre-tax profits of about 0.8. Moreover, we disentangle the tax response by means of financial planning from the transfer pricing and licensing channel. Our results suggest that transfer pricing and licensing are the dominant profit-shifting channel.
Subjects: 
Profit Shifting
Multinational Firm
Corporate Income Tax
Meta-Analysis
JEL: 
H25
H26
H32
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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