Free DP Download 30 November 2021-Global Evidence on Profit Shifting: The Role of Intangible Assets

Tuesday, November 30, 2021

Manthos Delis, Fotis Delis, Luc Laeven, Steven Ongena CEPR Discussion Paper No. 16615 | October 2021


We study global variations in profit shifting and the role played therein by firms' intangible assets. Employing nonparametric estimation techniques within a mainstay model of profit shifting, we construct a global database, with subsidiary -  year estimates of profit shifting from 95 countries for the period 2009-17. A key determinant of profit shifting is the subsidiaries' ratio of intangible assets, and this channel is stronger in countries with weaker institutions. Both our new database and our novel findings open important avenues to analyze the sources and effects of profit shifting.

You can watch an interview where Manthos Delis and Fotis Delis tell Tim Phillips about this research.