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

PSC In The News

RSS Feed icon

Lam looks at population and development in next 15 years in UN commission keynote address

Mitchell et al. find harsh family environments may magnify disadvantage via impact on 'genetic architecture'

Frey says Arizona's political paradoxes explained in part by demography

Highlights

PSC newsletter spring 2014 issue now available

Kusunoki wins faculty seed grant award from Institute for Research on Women and Gender

2014 PAA Annual Meeting, May 1-3, Boston

USN&WR ranks Michigan among best in nation for graduate education in sociology, public health, economics

Next Brown Bag

Monday, April 21
Grant Miller: Managerial Incentives in Public Service Delivery

Which countries become tax havens?

Archived Abstract of Former PSC Researcher

Dharmapala, Dhammika, and James Hines, Jr. 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