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on Accounting and Auditing |
| By: | Renkema, Theo-Jan (Tilburg University, School of Economics and Management) |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:tiu:tiutis:41f833d0-8c6e-4e9a-93ae-7820d8b4e6d4 |
| By: | Giulia Aliprandi; Alice Chiocchetti; Manon Francois; Laure Heidmann |
| Abstract: | Using exhaustive microdata on the worldwide activity of multinational firms from Country-by-Country Reports linked to employer-employee data, we study how profit shifting affects workers' earnings. We estimate that large French multinationals shift 19% of their foreign profits annually to low-tax jurisdictions, resulting in €10.3 billion shifted out of France and €3.7 billion in lost tax revenues. Exploiting France's mandatory profit-sharing policy, which mechanically links subsidiary-level reported profits to workers' compensation, we show that profit shifting reduces annual employees' earnings by 2.6%. Low-income workers are disproportionately affected, the bottom 10% losing 3.2% of wages compared to 2.3% for top 10% earners. Changing the profit-sharing formula to account for global, rather than subsidiary-level, profitability would increase wages by 1.9% overall and 4.1% for workers in profit-shifting subsidiaries. |
| Keywords: | multinational firms, profit shifting, tax revenue, incidence |
| JEL: | F23 H25 H26 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12202 |
| By: | Julie Remache |
| Abstract: | Remarks at the 2025 Annual Primary Dealer Meeting, Federal Reserve Bank of New York, New York City. |
| Keywords: | Federal Reserve balance sheets; ample reserves; monetary policy |
| Date: | 2025–09–29 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fednsp:101984 |
| By: | Jerome H. Powell |
| Date: | 2025–10–14 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgsq:101935 |
| By: | Qiu, Xincheng (Peking University); Russo, Nicolo (Goethe University Frankfurt) |
| Abstract: | This paper examines income tax systems in over thirty countries over the past forty years using microdata from the Luxembourg Income Study. We show that income tax systems worldwide are well approximated by a two-parameter log-linear effective tax function. We provide country- and year-specific estimates and document several insights. First, higher average tax rates are associated with higher progressivity. Second, richer countries have more progressive tax systems. Third, progressivity varies by family structure, with marriage and children associated with higher progressivity. Finally, transfers play an important role in redistribution, making the overall tax-and-transfer function more progressive than the tax function. |
| Keywords: | family structure, income tax progressivity, taxation |
| JEL: | E62 H20 H30 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18190 |
| By: | Dirk Ehnts; Jussi Ora |
| Abstract: | In this paper, we discuss the balance sheet mechanics of the Swedish government. We examine spending, government bond purchases, and tax payments. As long as the Swedish central bank, which is created through Swedish laws, supports the Swedish central government, it cannot run out of money. The Swedish government therefore plays a large role in the Swedish economy. It can and should target full employment and price stability, bringing to bear its fiscal power. |
| Keywords: | Riksbank; Swedish crowns; public finance; money creation |
| JEL: | E62 B52 E12 |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:lev:wrkpap:wp_1035 |
| By: | Jesus Felipe; John McCombie |
| Abstract: | This paper offers a retrospective view of the key pillar of Solow's neoclassical growth model, namely the aggregate production function. We review how this tool came to life and how it has survived until today, despite three criticisms that undermined its raison d'etre. They are the Cambridge Capital Theory Controversies, the Aggregation Problem, and the Accounting Identity. These criticisms were forgotten by the profession, not because they were wrong but because of the key role played by Robert Solow in the field. Today, these criticisms are not even mentioned when students are introduced to (neoclassical) growth theory, which is presented in most economics departments and macroeconomics textbooks as the only theory worth studying. |
| Keywords: | Accounting Identity; Aggregation Problem; Cambridge Capital Theory Controversies; Solow |
| JEL: | B22 B31 B32 B41 E13 E25 |
| Date: | 2024–03 |
| URL: | https://d.repec.org/n?u=RePEc:lev:wrkpap:wp_1046 |
| By: | Deniz Kattwinkel; Justus Preusser |
| Abstract: | This note applies tightness (Kattwinkel and Preusser (2025)) to the setting of Border and Sobel (1987, "Samurai Accountant: A Theory of Auditing and Plunder"). Border and Sobel characterize efficient mechanisms and argue that efficiency entails no loss of optimality. We characterize tight mechanisms and argue that tightness entails no loss of optimality. We show that tight mechanisms form a subset of efficient mechanisms. Therefore, tightness refines efficiency without loss of optimality. By characterizing tight mechanisms, one can replicate the insights from Border and Sobel (1987) and Chander and Wilde (1998). A novel insight is how and in which order the principal uses different instruments to provide incentives to different agent types. Further, we describe a procedure for constructing efficient mechanisms in a setting with a continuum of types. |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2509.24673 |