CEBI research accepted for publication in Journal of Public Economics

In recent research, Niels Johannesen and co-authors Johannes Becker and Nadine Riedel study how taxes affect the allocation of risk inside the multinational firm. The results suggest that firms shift risk to low-tax countries as an instrument to shift profits. This finding has implications for current policy discussions: while governments have recently attempted to enhance the protection of corporate tax bases in high-tax countries within the framework of the arm's length principle, the risk-cum-profit-shifting identified in the paper highlights the limitations of this approach.

Read more about Niels Johannesen and co-authors Johannes Becker and Nadine Riedel research here