The effects of taxation on U.S. multinationals and their Canadian affiliates / [by] Jason G. Cummins ; prepared for the Technical Committee on Business Taxation. : F21-4/96-4E-PDF
I develop an empirical approach that provides a general framework for studying the behaviour of multinational corporations (MNCs). The approach begins with a dynamic structural model of the multinational firm. The model treats the MNC's factors of production in different countries as separate inputs into a general production technology and incorporates unobservable firm-specific productivity shocks and local demand shocks. The semiparametric econometric procedure I develop to estimate the model relies on the exit rule and input demand functions generated by the solution to the firm's stochastic dynamic decision problem to consistently estimate the parameters of the firm's production technology. I then estimate the technology parameters using a new firm-level panel dataset on U.S. MNCs and their Canadian affiliates.--Abstract
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| Department/Agency | Canada. Department of Finance. |
|---|---|
| Title | The effects of taxation on U.S. multinationals and their Canadian affiliates / [by] Jason G. Cummins ; prepared for the Technical Committee on Business Taxation. |
| Series title | Working paper96-4 |
| Publication type | Series - View Master Record |
| Language | [English] |
| Other language editions | [French] |
| Format | Electronic |
| Electronic document | |
| Other formats | Paper-[English] |
| Note(s) | "I develop an empirical approach that provides a general framework for studying the behaviour of multinational corporations (MNCs). The approach begins with a dynamic structural model of the multinational firm. The model treats the MNC's factors of production in different countries as separate inputs into a general production technology and incorporates unobservable firm-specific productivity shocks and local demand shocks. The semiparametric econometric procedure I develop to estimate the model relies on the exit rule and input demand functions generated by the solution to the firm's stochastic dynamic decision problem to consistently estimate the parameters of the firm's production technology. I then estimate the technology parameters using a new firm-level panel dataset on U.S. MNCs and their Canadian affiliates."--Abstract. |
| Publishing information | Ottawa - Ontario : Finance Canada December 1996. |
| Description | 46p.graphs, references, tables |
| Catalogue number |
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| Subject terms | Taxes |