Department of Economics
D-80799 Munich, Germany
Institutional Affiliation: LMU Munich
NBER Working Papers and Publications
|November 2017||The Life-Cycle Dynamics of Exporters and Multinational Firms|
with Andreas Moxnes, Natalia Ramondo, Felix Tintelnot: w24013
This paper studies the life-cycle dynamics of exporters and multinational enterprises (MNEs). We present a dynamic model of the well-known proximity-concentration tradeoff, which is largely consistent with a set of new facts that we document using rich firm-level data for France and Norway. We use a calibrated version of the model to evaluate the role played by the firm’s choice of becoming an MNE in new exporters’ dynamics. Our main quantitative finding is that MNEs are key for understanding those dynamics: After a trade-liberalization shock, the calibrated model with MNEs triggers much larger responses in life-cycle exit and growth rates for young exporters than the ones in the calibrated model with only exporters. The difference between the two models hinges on the right truncation of f...
|December 2011||The Use of Tax Havens in Exemption Regimes|
with James R. Hines, Jr., Monika Schnitzer: w17644
This paper analyzes the tax haven investment behavior of multinational firms from a country that exempts foreign income from taxation. High foreign tax rates generally encourage firms to invest in tax havens, though significant costs of reallocating taxable income dampen these incentives. The behavior of German manufacturing firms from 2002-2008 is consistent with this prediction: at the mean, one percentage point higher foreign tax rates are associated with three percentage point greater likelihoods of owning tax haven affiliates. This contrasts with earlier evidence for U.S. firms subject to home country taxation, which are more likely to invest in tax havens if they face lower foreign tax rates. Foreign tax rates appear to be unrelated to tax haven investments of German firms in service...