Edited by R. Glenn Hubbard, Martin Feldstein, James R. Hines Jr.
Posted: Saturday, January 1, 2000
Dimensions: 9.35'' x 6.41''
334 pages
University of Chicago Press
Publication Date: August 1995
Hardcover
ISBN: 0226240959
The tax rules of the United States and other countries have intended and unintended effects on the operations of multinational corporations, influencing everything from the formation and allocation of capital to competitive strategies. The growing importance of international business has led economists to reconsider whether current systems of taxing international income are viable in a world of significant capital market integration and global commercial competition.
This volume examines the effect of tax policy on international investment choices by presenting in-depth analyses of the interaction of international tax rules and the investment decisions of multinational enterprises. Ten papers assess the role of investment by multinational firms in the U.S. economy and the design of international tax rules for multinational investment; analyze channels through which international tax rules affect the costs of international business activities; and examine ways in which international tax rules affect financing decisions of multinational firms. As a group, the papers demonstrate that international tax rules have significant effects on firms' investment and other financing decisions.
This state-of-the-art volume will be of interest to researchers in public finance and international economics and to policymakers concerned with tax policy and international investment issues.
Martin Feldstein is the George F. Baker Professor of Economics at Harvard University and president of the National Bureau of Economic Research. James R. Hines, Jr., is an associate professor of public policy at the John F. Kennedy School of Government of Harvard University and a faculty research fellow of the National Bureau of Economic Research. R. Glenn Hubbard is the Russell L. Carson Professor of Economics and Finance at the Graduate School of Business of Columbia University and a research associate of the National Bureau of Economic Research.
Table of Contents
Preface Introduction
Outward Direct Investment and the U.S. Economy Comment
The Effects of Outbound Foreign Direct Investment on the Domestic Capital Stock Comment
Why Is There Corporate Taxation in a Small Open Economy? The Role of Transfer Pricing and Income Shifting Comment
The Impact of International Tax Rules on the Cost of Capital Comment
The Tax Sensitivity of Foreign Direct Investment: Evidence from Firm-Level Panel Data Comment
The Alternative Minimum Tax and the Behavior of Multinational Corporations Comment
Accounting Standards, Information Flow, and Firm Investment Behavior Comment
Taxes, Technology Transfer, and the R&D Activities of Multinational Firms Comment
Do Repatriation Taxes Matter? Evidence from the Tax Returns of U.S. Multinationals Comment
Interest Allocation Rules, Financing Patterns, and the Operations of U.S. Multinationals Comment
In Making a Killing: The Deadly Implications of the Counterfeit Drug Trade, AEI resident fellow Roger Bate analyzes the burgeoning international trade in counterfeit drugs and recommends steps that governments and law enforcement agencies could take to stop it.
Should Medicare pay for patient expenses the way automobile insurers pay for car-repair bills? In How to Fix Medicare, health economist Roger Feldman argues that a radical shift in Medicare policy is not only possible but imperative.
