NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Repatriation Taxes, Repatriation Strategies and Multinational Financial Policy

Rosanne Altshuler, Harry Grubert

NBER Working Paper No. 8144
Issued in March 2001
NBER Program(s):   PE

Several investment-repatriation strategies are added to the standard model of a multinational in which an affiliate is located in a low-tax country and is limited to two alternatives: repatriating taxable dividends to the parent or investing in its own real operations. In our model, affiliates can invest in passive assets, which the parent can borrow against, or in related affiliates which can be used as vehicles for tax-favored repatriations. We show analytically how the availability of alternative strategies can effect real investment throughout the worldwide corporation. We use firm level data for U.S. multinationals to test for the importance of alternative strategies. The evidence is generally consistent with the theory, particularly the strategies using related affiliates.

download in pdf format
   (238 K)

email paper

This paper is available as PDF (238 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w8144

Published: Altshuler, Rosanne and Harry Grubert. "Repatriation Taxes, Repatriation Strategies And Multinational Financial Policy," Journal of Public Economics, 2003, v87(1,Jan), 73-107.

Users who downloaded this paper also downloaded these:
Altshuler, Grubert, and Newlon w6383 Has U.S. Investment Abroad Become More Sensitive to Tax Rates?
Desai, Foley, and Hines Jr. w8507 Repatriation Taxes and Dividend Distortions
Hines w5589 Tax Policy and the Activities of Multinational Corporations
Altshuler, Newlon, and Randolph w4667 Do Repatriation Taxes Matter? Evidence from the Tax Returns of U.S. Multinationals
Altshuler Do Repatriation Taxes Matter? Evidence from the Tax Returns of U.S. Multinationals
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us