Donald Trump set a deadline of July 9 2025 for trade deals to be made before he hits some of the world’s biggest economies with his controversial tariffs. It’s impossible to predict what will happen on the day, but it is already clear that his economic policies are damaging American interests.
We provide estimates of profit shifting for over 2 million firm-year observations in 100 countries over the period 2009–2020. Employing nonparametric estimation techniques within a mainstay model of profit shifting, we examine how the profits of both parent and subsidiary firms within a multinational group respond to marginal changes in the composite tax indicator. The key advantage of this approach is that it yields firm-year estimates of profit shifting. Multinational firms engage in extensive profit shifting by maintaining affiliates in low-tax countries and zero-tax havens.
We show that in a canonical model with heterogeneous entrepreneurs, financial frictions, and an imperfectly elastic supply of capital, a fall in the interest rate has an ambiguous effect on aggregate economic activity. In partial equilibrium, a lower interest rate raises aggregate investment both by relaxing financial constraints and by prompting relatively less productive entrepreneurs to invest. In general equilibrium, however, this higher demand for capital raises its price and crowds out investment by more productive entrepreneurs.
We show that in a canonical model with heterogeneous entrepreneurs, financial frictions, and an imperfectly elastic supply of capital, a fall in the interest rate has an ambiguous effect on aggregate economic activity. In partial equilibrium, a lower interest rate raises aggregate investment both by relaxing financial constraints and by prompting relatively less productive entrepreneurs to invest. In general equilibrium, however, this higher demand for capital raises its price and crowds out investment by more productive entrepreneurs.
We provide estimates of profit shifting for over 2 million firm-year observations in 100 countries over the period 2009–2020. Employing nonparametric estimation techniques within a mainstay model of profit shifting, we examine how the profits of both parent and subsidiary firms within a multinational group respond to marginal changes in the composite tax indicator. The key advantage of this approach is that it yields firm-year estimates of profit shifting. Multinational firms engage in extensive profit shifting by maintaining affiliates in low-tax countries and zero-tax havens.
The government is trying to fight back over the OPEKEPE scandal, which has seen it besieged over the past few days as the opposition and the local media has feasted on the details of the fraudulent disbursement of EU funds to Greek farmers.
Oleg Golovnev/ShutterstockImages of flashy sports cars. Lavish lifestyle shots. These are just some of the red flags consumers should watch out for when they turn to social media for financial advice.
Consumers should not believe everything they see on Instagram, TikTok or YouTube from the growing numbers of “finfluencers” – content creators who build their audience by giving out financial advice.
Goksi/ShutterstockUnlike previous economic downturns, the COVID pandemic created a crisis that disrupted both education and employment, abruptly halting young people’s emerging careers and clouding their hopes for the future. It doubly affected those transitioning into adulthood, out of school or university and into work, and it threatened the job security of those embarking on their careers when the pandemic began.
Ask someone what a calling is, and they’ll probably say something like “doing work you love.” But as a management professor who has spent two decades researching the history and impact of calling, I’ve found it’s much more than personal fulfillment.
Opposition parties are clamouring for a preliminary inquiry into the farming subsidies scandal, confident that fresh evidence will be enough to implicate PM Kyriakos Mitsotakis. The scandal has grabbed the public’s attention, with polling suggesting that the revelations have put a stop to New Democracy’s recovery efforts.
