Please use this identifier to cite or link to this item:
https://doi.org/10.21256/zhaw-3170| Publication type: | Working paper – expertise – study |
| Title: | Decomposing the margins of transfer pricing |
| Authors: | Lassmann, Andrea Zoller-Rydzek, Benedikt |
| et. al: | No |
| DOI: | 10.21256/zhaw-3170 10.3929/ethz-b-000322881 |
| Extent: | 27 |
| Issue Date: | 2019 |
| Series: | KOF Working Papers |
| Series volume: | 450 |
| Publisher / Ed. Institution: | ETH Zürich |
| Publisher / Ed. Institution: | Zürich |
| Language: | English |
| Subject (DDC): | 338: Production |
| Abstract: | This paper examines the determinants and margins of profit shifting through transferpricing. We develop a theory model, where transfer pricing patterns are governed by a generalized concealment cost function (CCF). Our empirical analysis draws on micro-level data about transaction-level imports, firm-level characteristics, as well as tax differentials between regions in Switzerland and countries abroad. We find, both theoretically and empirically, that more productive multinational firms deviate less from the arms’ length price and trade lower quantities, compared to MNEs with lower productivity. Moreover, the decision of firms to engage in transfer pricing depends negatively on a fixed cost component in the CCF, as well as trade costs. The model allows us to estimate a theory-consistent concealment cost function, which can be used for counterfactual analysis. |
| URI: | https://digitalcollection.zhaw.ch/handle/11475/17483 |
| License (according to publishing contract): | Licence according to publishing contract |
| Departement: | School of Management and Law |
| Organisational Unit: | International Management Institute (IMI) |
| Appears in collections: | Publikationen School of Management and Law |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| WorkingPaperSeries_DecomposingtheMarginsofTransferPricing_2019.pdf | 1.38 MB | Adobe PDF |  View/Open |
Show full item record
Lassmann, A., & Zoller-Rydzek, B. (2019). Decomposing the margins of transfer pricing. ETH Zürich. https://doi.org/10.21256/zhaw-3170
Lassmann, A. and Zoller-Rydzek, B. (2019) Decomposing the margins of transfer pricing. Zürich: ETH Zürich. Available at: https://doi.org/10.21256/zhaw-3170.
A. Lassmann and B. Zoller-Rydzek, “Decomposing the margins of transfer pricing,” ETH Zürich, Zürich, 2019. doi: 10.21256/zhaw-3170.
LASSMANN, Andrea und Benedikt ZOLLER-RYDZEK, 2019. Decomposing the margins of transfer pricing. Zürich: ETH Zürich
Lassmann, Andrea, and Benedikt Zoller-Rydzek. 2019. “Decomposing the Margins of Transfer Pricing.” Zürich: ETH Zürich. https://doi.org/10.21256/zhaw-3170.
Lassmann, Andrea, and Benedikt Zoller-Rydzek. Decomposing the Margins of Transfer Pricing. ETH Zürich, 2019, https://doi.org/10.21256/zhaw-3170.
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.