TY  - JOUR
AU  - Hines,James R., Jr.
TI  - The Transfer Pricing Problem:  Where the Profits Are
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3538
PY  - 1990
Y2  - December 1990
UR  - http://www.nber.org/papers/w3538
L1  - http://www.nber.org/papers/w3538.pdf
N1  - Author contact info:
James R. Hines
Department of Economics
University of Michigan
343 Lorch Hall
611 Tappan Street
Ann Arbor, MI  48109-1220
Tel: 734/764-2320
Fax: 734/764-2769
E-Mail: jrhines@umich.edu
AB  - Section 1 introduces the material. Section 2 of this paper describes the transfer pricing problem and some solutions that have been proposed in the past. Section 3 offers a different solution and demonstrates that it supports an efficient allocation of resources. Section 4 briefly discusses some of the complications that arise in practice, analyzes methods governments have employed to address this problem, and argues that the solution corresponds to concepts of income division that governments have tried to employ in broader contexts.
ER  -