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Showing 1 – 5 of 5 results.
Self-published

Data and Code for "Exploring Residual Profit Allocation" (ICPSR 147621)

Released/updated on: 2023-02-03
Residual profit allocation (RPA) schemes have rapidly come to prominence in discus- sions of international tax reform, but with almost nothing known about their economic impact. These schemes tax multinationals by allocating their ‘routine’ profits to coun- tries in which their activities take place and sharing their remaining ‘residual’ profit across countries—including perhaps ‘destination’ countries, in which they may have no physical presence but only a digital one—on some formulaic basis. These are fundamen- tal departures from century-old norms. This paper explores the implications, conceptual and empirical, of moving to some form of RPA. Residual profits are estimated to be substantial, concentrated in relatively few multinationals that are relatively heavy in intangible assets, and with by far the largest share accruing to those headquartered in the United States. The impact on tax revenue of adopting a destination-based RPA is substantial for many countries; while adverse for investment hubs, it appears, strik- ingly, to be beneficial for developing countries. The directional impact on investment is specific to both countries and multinationals, and aggregate production efficiency is unlikely to increase unless routine profits are lightly taxed.
Self-published

Data And code for: "Knowledge Diffusion, Trade and Innovation across Countries and sectors" (ICPSR 120281)

Released/updated on: 2021-12-17
This paper provides a unified framework for quantifying cross-country and cross-sector interactions among trade, innovation, and knowledge diffusion. This framework is used to study the effect of trade liberalization in an endogenous growth model with comparative advantage and the stock of knowledge determined by innovation and diffusion. The model is calibrated to match observed cross-country and cross-sector heterogeneity in production, innovation and knowledge spillovers. The counterfactual analysis shows that a reduction in trade costs induces a re-allocation of R&D and comparative advantage across sectors. Heterogeneous knowledge diffusion amplifies specialization effects of trade-induced R&D re-allocation, becoming an important source of welfare. 
Self-published

Data and Code for: Trade Policies and Fiscal Devaluations (ICPSR 173502)

Released/updated on: 2025-02-03
This is data and replication code for a paper.
Abstract:Fiscal devaluations—an increase in import tariffs and export subsidies (IX) or an increase in value-added taxes and payroll subsidies (VP)—have been shown to provide as much stimulus under fixed exchange rates as a currency devaluation. We find that if agents expect policies to be reversed and the tax pass-through is large, VP is contractionary and IX provides a modest boost. In our medium-scale DSGE model, both features are crucial in accounting for Germany’s underperformance in response to VP in 2007. These findings cast doubt on fiscal devaluations as a cyclical stabilization tool when monetary policy is constrained.(JEL E32, F30, H22)