Since 1975, investment managers in the United States have been permitted to pay excess brokerage commissions on securities transactions and then utilize those excess payments—commonly known as “soft dollars”—to purchase research and related services, thereby subsidizing the investment...

We study long-run environmental impacts of trade liberalization on US manufacturing by exploiting a plausibly exogenous reduction in US trade policy uncertainty: the conferral of Permanent Normal Trade Relations (PNTR) to China. Using detailed data on establishment-level pollution emissions and...

An inversion is a strategy used by multinational enterprises (MNEs) to avoid high corporate taxes in their home countries, by changing their domicile to foreign countries with lower taxes. While prior studies have focused primarily on firm-level and country-level determinants of inversions, we...

This paper analyses aspects of the US and Brazilian foreign policy. Some events relate actions linked to the political realism school and others embraced in the interdependence and globalization views. This paper explores the historical environment where the United States and Brazil followed...

U.S. foreign trade has grown much more rapidly than GDP in recent decades. But there is no consensus as to why. More than half of U.S. foreign trade consists of arms-length and intra-firm trade activity by multinational corporations (MNCs). Thus, in order to better understand the growth of...

As a direct response to the recent trend in corporate expatriations, politicians have questioned the patriotism of firms that reorganize outside the U.S. and introduced numerous legislative proposals designed to prevent corporate expatriations. The implicit assumption made in proposing this...

A key strategic choice for multinational firms is where to locate. When investing abroad, firms may find collocating with their own and competitors' prior investments beneficial. Such agglomeration may provide knowledge and infrastructure spillovers. Yet, as a firm invests sequentially, its past...

In this paper, we discuss the hypothetical impact of the Amount A regime on US corporate income tax revenue. The general outline of the two-pillar taxation system, which includes Amount A as a part of Pillar One, was agreed upon in October 2021 by the Inclusive Framework delegates who tackled...

From a macroeconomic perspective and using input-output techniques, this paper investigates to what extent, and how, the growing use of intermediates imported from China has contributed to the productivity growth within the manufacturing production processes of 22 high-income countries. Using...

This paper examines the consequences of foreign tax holiday participation for U.S. economic activities. Chow, Hoopes, and Maydew (2020) present the first evidence of U.S. multinational companies’ (MNCs) participation in foreign tax holidays and find significant involvement in recent decades....