TY  - JOUR
AU  - Altshuler,Rosanne
AU  - Grubert,Harry
TI  - Repatriation Taxes, Repatriation Strategies and Multinational Financial Policy
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 8144
PY  - 2001
Y2  - March 2001
UR  - http://www.nber.org/papers/w8144
L1  - http://www.nber.org/papers/w8144.pdf
N1  - Author contact info:
Rosanne Altshuler
Department of Economics
Rutgers University
75 Hamilton Street
New Brunswick, NJ 08901
Tel: 212-662-8432
E-Mail: altshule@rci.rutgers.edu

Harry Grubert
Department of the Treasury
E-Mail: harry.grubert@do.treas.gov
AB  - 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.
ER  -