Browsing Department of Economics (ECON) by Author "Schjelderup, Guttorm"
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Nielsen, Søren Bo; Raimondos-Møller, Pascalis; Schjelderup, Guttorm (København, 2005)[More information][Less information]
Abstract: The paper examines how country tax differences affect a multinational enterprise's choice to centralize or de-centralize its decision structure. Within a simple model that emphasizes the multiple conflicting roles of transfer prices in MNEs – here, as a strategic pre-commitment device and a tax manipulation instrument –, we show that (de-)centralized decisions are more profitable when tax differentials are (small) large. Keywords: Centralized vs. de-centralized decisions, taxes, MNEs. JEL-Classification: H25, F23, L23. URI: http://hdl.handle.net/10398/7652 Files in this item: 1
wp10-2005.pdf (164.5Kb) -
Nielsen, Søren Bo; Raimondos-Møller, Pascalis; Schjelderup, Guttorm (København, 2000)[More information][Less information]
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Nielsen, Søren Bo; Raimondos-Møller, Pascalis; Schjelderup, Guttorm (Munich, 2001)[More information][Less information]
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Raimondos-Møller, Pascalis; Schjelderup, Guttorm; Nielsen, Søren Bo (København, 2006)[More information][Less information]
Abstract: We examine how a multinational’s choice to centralize or de-centralize its decision structure is affected by country tax differentials. Within a simple model that emphasizes the multiple conflicting roles of transfer prices in MNEs — here, as a strategic pre-commitment device and a tax manipulation instrument —, we show that decentralization is preferred in case of small tax differentials, whereas centralization can be more profitable, when tax differentials are large. In essence, the organizational flexibility of MNEs is triggered by the scope for tax minimization. Our analysis allows for both commitment and non-commitment to transfer prices, and for alternative modes of competition. Keywords: Centralized vs. de-centralized decisions, taxes, transfer prices, MNEs. JEL-Classification: H25, F23, L23. URI: http://hdl.handle.net/10398/7509 Files in this item: 1
wp7-2006.pdf (234.3Kb) -
Nielsen, Søren Bo; Raimondos-Møller, Pascalis; Schjelderup, Guttorm (København, 2001)[More information][Less information]
Now showing items 1-5 of 5