Home > Publications . Search All . Browse All . Country . Browse PSC Pubs . PSC Report Series

PSC In The News

RSS Feed icon

Shaefer and Edin's book ($2 a Day) cited in piece on political debate over plight of impoverished Americans

Eisenberg tracks factors affecting both mental health and athletic/academic performance among college athletes

Shapiro says Americans' low spending reflects "cruel lesson" about the dangers of debt

Highlights

Susan Murphy elected to the National Academy of Sciences

Maggie Levenstein named director of ISR's Inter-university Consortium for Political and Social Research

Arline Geronimus receives 2016 Harold R. Johnson Diversity Service Award

PSC spring 2016 newsletter: Kristin Seefeldt, Brady West, newly funded projects, ISR Runs for Bob, and more

Next Brown Bag

PSC Brown Bags
will resume fall 2016

Which countries become tax havens?

Archived Abstract of Former PSC Researcher

Dharmapala, Dhammika, and James Hines. 2009. "Which countries become tax havens?" Journal of Public Economics, 93(9-10): 1058-1068.

This paper analyzes the factors influencing whether countries become tax havens. Roughly 15% of countries are tax havens: as has been widely observed. these countries tend to be small and affluent. This paper documents another robust empirical regularity: better-governed countries are much more likely than others to become tax havens. Controlling for other relevant factors, governance quality has a statistically significant and quantitatively large association with the probability of being a tax haven. For a typical country with a population under one million, the likelihood of a becoming a tax haven rises from 26% to 61% as governance quality improves from the level of Brazil to that of Portugal. Evidence from US firms suggests that low tax rates offer Much more powerful inducements to foreign investment in well-governed countries than do low tax rates elsewhere. This may explain why poorly-governed countries do not generally attempt to become tax havens, and suggests that the range of sensible tax policy options is constrained by the quality of governance. (C) 2009 Elsevier B.V. All rights reserved.

DOI:10.1016/j.jpubeco.2009.07.005 (Full Text)

Browse | Search : All Pubs | Next