IDEAS home Printed from https://ideas.repec.org/p/ags/uwarer/268784.html
   My bibliography  Save this paper

The Optimal Design Of Transfer Pricing Rules: A Non-Cooperative Analysis

Author

Listed:
  • Raimondos-Moller, Pascalis
  • Scharf, Kimberley A.

Abstract

The literature on the regulation of multinationals' transfer prices has not considered the possibility that governments choose their transfer pricing rules in a non-cooperative fashion. The present paper fills this gap and shows that a non-cooperative equilibrium is characterized by above-optimal levels of effective taxation in comparison with a cooperative solution. We also derive conditions under which harmonization of transfer pricing rules lead to a Pareto improvement, and show that harmonization according to the 'arm's length' principle is not Pareto improving relative to the non-cooperative outcome.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Raimondos-Moller, Pascalis & Scharf, Kimberley A., 1997. "The Optimal Design Of Transfer Pricing Rules: A Non-Cooperative Analysis," Economic Research Papers 268784, University of Warwick - Department of Economics.
  • Handle: RePEc:ags:uwarer:268784
    DOI: 10.22004/ag.econ.268784
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/268784/files/twerp502.pdf
    Download Restriction: no

    File URL: https://ageconsearch.umn.edu/record/268784/files/twerp502.pdf?subformat=pdfa
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.268784?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Schjelderup, Guttorm & Ulltveit-Moe, Karen Helene & Kind, Hans Jarle, 2001. "Corporate Taxation, Multinational Enterprise and Economic Integration," CEPR Discussion Papers 2753, C.E.P.R. Discussion Papers.

    More about this item

    Keywords

    Agricultural and Food Policy; Demand and Price Analysis; Financial Economics;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:uwarer:268784. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://warwick.ac.uk/fac/soc/economics/research/workingpapers/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.