From:                              Heres, Kerstin <Kerstin.Heres@zew.de>

Sent:                               Donnerstag, 31. Oktober 2019 11:20

To:                                   IHS Library

Subject:                          ZEW Discussion Papers

 

 Sehr geehrte Damen und Herren,

im Rahmen unseres E-Mail Services finden Sie Titel und Zusammenfassung der neuen Discussion Papers aus den Forschungsbereichen des ZEW, um deren

Zusendung Sie gebeten hatten.

 

as requested we send you via our e-mail service the Discussion Papers from those Research Departments of the Centre for European Economic Research which you have selected.

 

Mit freundlichen Grüßen / Sincerely yours

Kerstin Heres

ZEW

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Corporate Taxation and Public Finance

 

 

NO. 1 9 - 0 3 7 | 0 9 / 2 0 1 9

 

Tax Law and the Transfer of Start-up Losses:

A European Overview and Categorization

// ANNA THERESA BÜHRLE AND CHRISTOPH SPENGEL

 

Abstract:

Most of the European Member States employ anti-loss trafficking rules. They aim to prevent the acquisition of mere corporate shells with high tax loss carryforwards for the tax asset to be utilized in profitable companies. However, other corporations can unintentionally be affected by the anti-abuse regulations if there is a change in ownership or activity. The transfer restrictions have been argued to impair start-up financing, as investors are faced with the risk of losing accumulated loss carryforwards in the corporation upon the entering of new or the capital increase of existing investors.

This study provides an overview over the design and development of loss transfer restrictions in the EU28 over a time period of 19 years (2000 – 2018). Different aspects of the regulations are analyzed against the background of their impact on start-ups. Finally, the rules are categorized with respect to their strictness. Over time, more countries introduced restrictions. At the same time, the regulations became more lenient, offering start-ups more opportunities to maintain their loss carryforwards and, therefore, decreasing the risk for investors.

 

JEL: M13, H25, H32, L52

Keywords: tax loss carryforward, loss trafficking, loss transfer, entrepreneurship, start-ups

 

Download this ZEW Discussion Paper from our ftp server:

http://ftp.zew.de/pub/zew-docs/dp/dp19037.pdf

 

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NO. 1 9 - 0 4 2 | 1 0 / 2 0 1 9

 

Can European Banks’ Country-by-Country Reports Reveal Profit Shifting?

An Analysis of the Information Content of EU Banks’ Disclosures

// VERENA K. DUTT, K ATHARINA NICOLAY, HEIKO VAY, AND JOHANNES VOGET

 

Abstract:

We create a novel database of hand-collected information from the country-by-country reports (CbCRs) of more than 100 multinational bank groups headquartered in the EU for 2014-2016. We compare this new dataset with information from Orbis and Bank Focus to assess in how far the new disclosure obligation increased transparency on banks’ tax avoidance behavior. Our descriptive analysis shows that CbCRs uncover a large fraction of worldwide profits and real activities in terms of employees of EU bank groups, especially in tax havens. We also document a striking disconnect between reported profits and real activity, noting considerable heterogeneity between different tax havens and bank groups from different headquarter countries. Regression analysis based on CbCR data and Bank Focus data leads us to expect a tax semi-elasticity of banks’ reported profits of about -4.6. In this regard, CbCRs are indicative of a more pronounced tax sensitivity than conventional databases suggest. However, the lack of important economic variables (total assets and staff cost) impedes an exact estimation of banks’ profit shifting based on CbCR data alone and with standard methods. These insights are especially relevant in the context of the ongoing political discussions whether to introduce a public CbCR for all large multinational firms in the EU.

 

JEL Classification: H25, H26, G21, G28

Keywords: Tax Avoidance; Profit Shifting; Country-by-Country Reporting; Public Disclosure; Tax Transparency; Financial Institutions; Database

 

Download this ZEW Discussion Paper from our ftp server:

http://ftp.zew.de/pub/zew-docs/dp/dp19042.pdf

 

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Economics of Innovation and Industrial Dynamics

 

 

NO. 1 9 - 0 3 8 | 0 9 / 2 0 1 9

 

Effects of R&D Subsidies on Regional Economic Dynamics:

Evidence from Chinese Provinces

// JONATHAN EBERLE AND PHILIPP BÖING

 

Abstract:

We investigate the impact of research and development (R&D) subsidies on R&D inputs of large- and medium-sized firms and on additional innovation and economic activities in Chinese provinces. A panel vector autoregressive (VAR) model and corresponding impulse response function (IRF) analysis allow us to differentiate between direct and indirect effects, which add up to total effects. We find that an increase of R&D subsidies significantly decreases private R&D investments, although there is a significant positive effect on the R&D personnel employed in firms. We interpret these findings as a partial crowding-out effect because public funds substitute some private funds while total R&D inputs still increase. Complementarily, we find a positive secondary effect on the provincial patent activity, our measure of technological progress. Interestingly, we also find potentially unintended effects of R&D subsidies on increases in the investment rate in physical capital and residential buildings. Although R&D subsidies fail to incentivise private R&D expenditures, firms increase total R&D inputs, and provincial economies benefit from secondary effects on technological progress and capital deepening.

 

Keywords: China, R&D subsidies, regional economic development, panel VAR, impulse response function

JEL: C33, R11, R58, O38, O47

 

Download this ZEW Discussion Paper from our ftp server:

http://ftp.zew.de/pub/zew-docs/dp/dp19038.pdf

 

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NO. 1 9 - 0 4 1 | 0 9 / 2 0 1 9

 

The Real Effects of Bank Distress:

Evidence from Bank Bailouts in Germany

// JOHANNES BERSCH, HANS DEGRYSE, THOMAS KICK, AND INGRID STEIN

 

Abstract:

How does bank distress impact their customers’ probability of default and trade credit availability? We address this question by looking at a unique sample of German firms from

2000 to 2011. We follow their firm-bank relationships through times of distress and crisis, featuring the different transmission of bank distress shocks into already weakened firm balance sheets. We find that a distressed bank bailout, which is subject to restructuring and deleveraging conditions, leads to a bank-induced increase of firms’ probabilities of default. Moreover, bailouts tend to reduce trade credit availability and ultimately firms’ sales. We further find that the direction and magnitude of the effects depends on firm quality and the relationship orientation of banks.

 

Keywords: bank distress, bank risk channel, firm risk channel, relationship banking, firm defaults, financial crisis

JEL-Classification: G01, G21, G24, G33

 

Download this ZEW Discussion Paper from our ftp server:

http://ftp.zew.de/pub/zew-docs/dp/dp19041.pdf

 

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NO. 1 9 - 0 4 3 | 1 0 / 2 0 1 9

 

Markets for Technology in Europe – Mapping Demand and its Drivers

// CHRISTOPH GRIMPE, WOLFGANG SOFKA, PHILIPP SCHULZ, AND GEOFFREY THILO BORCHHARDT

 

Abstract:

Functioning markets for technology are an important determinant for the type, scope and distribution of innovation activities in an economy. However, markets for technology are often underdeveloped or inefficient. Existing theory attributes such imperfections to the supply side or differences in market designs. We know comparatively little, though, about the structural forces that shape the demand side of markets for technology. In this study, we reason that demand depends on the sectoral pattern of innovation and the distance of a country’s industry to the global technological frontier. We explore these dimensions based on longitudinal industry-level data from the Community Innovation Survey. We find that the demand on markets for technology is particularly driven by science-based industries and to a lesser degree by scale-intensive industries. Demand decreases, though, the closer industries are to the technological frontier. These findings highlight sector specific opportunities and constraints for policies promoting markets for technology.

 

Keywords: markets for technology, demand side, patterns of innovation, sectoral studies

JEL: L10, O32, O34

 

Download this ZEW Discussion Paper from our ftp server:

http://ftp.zew.de/pub/zew-docs/dp/dp19043.pdf

 

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NO. 1 9 - 0 4 4 | 1 0 / 2 0 1 9

 

Firm Acquisitions by Family Firms:

A Mixed Gamble Approach

// KATRIN HUSSINGER AND ABDUL-BASITISSAH

 

Abstract:

This study elucidates the mixed gamble confronting family firms when considering a related firm acquisition. The socioemotional and financial wealth trade-off associated with related firm acquisitions as well as their long-term horizon turns family firms more likely to undertake a related acquisition than non-family firms, especially when they are performing above their aspiration level. Post-merger performance pattern confirm that family firms are able to create long-term value through these acquisitions and by doing so they surpass non-family firms. These findings stand in contrast to commonly used behavioural agency predictions, but can be reconciled with theory through a mixed gambles’ lens.

 

Key Words: Firm acquisitions; related firm acquisitions; mixed gamble; aspiration level, socioemotional wealth, value creation

JEL: G34, L10, L20, M20

 

Download this ZEW Discussion Paper from our ftp server:

http://ftp.zew.de/pub/zew-docs/dp/dp19044.pdf

 

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Environmental and Resource Economics, Environmental Management

 

 

NO. 1 9 - 0 3 9 | 0 9 / 2 0 1 9

 

Inter-Charity Competition under Spatial Differentiation:

Sorting, Crowding, and Spillovers

// CARLO GALLIER, TIMO GOESCHL, MARTIN KESTERNICH, JOHANNES LOHSE, CHRISTIANE

REIF, AND DANIEL RÖMER

 

Abstract:

We study spatially differentiated competition between charities by partnering with two foodbanks in two neighboring cities to conduct a field experiment with roughly 350 donation appeals. We induce spatial differentiation by varying the observability of charities’ location such that each donor faces a socially close ‘home’ and a distant ‘away’ charity. We find that spatially differentiated competition is characterized by sorting, crowding-in, and an absence of spillovers: Donors sort themselves by distance; fundraising (through matching) for one charity raises checkbook giving to that charity, irrespective of distance; but checkbook giving to the unmatched charity is not affected. For lead donors, this implies that the social distance between donors and charities is of limited strategic important. For spatially differentiated charities, matching ‘home’ donations maximizes overall charitable income. Across both charities, however, the additional funds raised fail to cover the cost of the match, despite harnessing social identity for giving.

 

Keywords: Altruism; public goods; charitable giving; social distance, field experiment, competition.

JEL: C9, D7, H4

 

Download this ZEW Discussion Paper from our ftp server:

http://ftp.zew.de/pub/zew-docs/dp/dp19039.pdf

 

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Market Design

 

NO. 1 9 - 0 4 0 | 0 9 / 2 0 1 9

 

Incomplete Contracts in Dynamic Procurement

// VITALI GRETSCHKO AND MARTIN POLLRICH

 

Abstract:

We analyze the problem of a buyer who purchases a long-term project from one of several suppliers. A changing state of the world influences the costs of the suppliers. Complete contracts conditioning on all future realizations of the state are infeasible. We show that contractual incompleteness comes without a cost. The buyer achieves the same surplus with complete and incomplete contracts. The key insight is that the allocation prescribed by optimal complete contracts is sequentially optimal with incomplete contracts if the buyer does not receive too much information ex-interim. We show that the English auction restricts the information optimally.

 

JEL classification: D44, D82, H57

Keywords: Incomplete contracts, repeated relationships, procurement, commitment

 

Download this ZEW Discussion Paper from our ftp server:

http://ftp.zew.de/pub/zew-docs/dp/dp19040.pdf

                                                                

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Kerstin Heres

ZEW - Leibniz Centre for European Economic Research
Information and Knowledge Management, Sales

· International Co-operation and Public Relations
Tel.: +49 621 1235-130
E-Mail: kerstin.heres@zew.de
Internet:
www.zew.de · www.zew.eu · twitter.com/ZEW

 


ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung GmbH Mannheim, L7,1, 68161 Mannheim
ZEW - Leibniz Centre for European Economic Research , L7,1, 68161 Mannheim, Germany
Sitz der Gesellschaft: Mannheim - Amtsgericht Mannheim HRB 6554
ǀ Seat of the Company: Mannheim - Local Court Mannheim HRB 6554
Aufsichtsratsvorsitzende: Ministerin Theresia Bauer MdL
ǀ Chairwoman of the Supervisory Board: Minister Theresia Bauer MdL
Geschaeftsfuehrer: Prof. Achim Wambach, PhD, Thomas Kohl
ǀ Executive Directors: Prof. Achim Wambach, PhD, Thomas Kohl

––

ZEW – Leibniz-Zentrum für Europäische Wirtschaftsforschung GmbH Mannheim 

L7, 1 · 68161 Mannheim | Sitz der Gesellschaft: Mannheim · Amtsgericht Mannheim HRB 6554 | Aufsichtsratsvorsitzende: Ministerin Theresia Bauer MdL | Geschäftsführer: Prof. Achim Wambach, Ph.D.; Thomas Kohl

 

ZEW – Leibniz Centre for European Economic Research

L7, 1 · 68161 Mannheim, Germany | Registered Office: Mannheim · Local Court Mannheim HRB 6554 | Chairwoman of the Supervisory Board: Minister Theresia Bauer MdL | Executive Directors: Prof. Achim Wambach, PhD; Thomas Kohl