Research

Publications

“Heads I win, tails you lose: Asymmetric taxes, risk taking, and innovation” with Brent Glover and Oliver Levine.
PaperBibTeX, Journal of Monetary Economics. 2019.
The worldwide tax system incentivized US firms to invest in projects that were riskier and more transferable-capital intensive.

Working Papers

“The Real Effects of US Tax Arbitrage by Foreign Multinational Firms”
PaperBibTeX
Revise and resubmit, Review of Financial Studies.
Foreign firms strip profits out of the US to avoid taxes. When this becomes harder (due to foreign countries’ introduction of CFC legislation), they scale back investment and employment in the US.

“Does Foreign Tax Arbitrage Promote Innovation?”
PaperBibTeX
US multinationals’ use of intellectual property abroad through subsidiaries in foreign tax havens supports domestic innovation.

“Foreign investment of US multinationals: the effect of tax policy and agency conflicts” with Brent Glover and Oliver Levine.
PaperBibTeX
The 2017 Tax Cut and Jobs Act 1) lowered the tax rate on foreign earnings, and 2) increased the opportunity cost of capital abroad by lifting restrictions on repatriating foreign profits. With respect to foreign investment, the latter of these countervailing effects dominates.

“External Governance and Internal Resource Allocation” with Andrew Bird, Stephen A. Karolyi, and Thomas G. Ruchti.
PaperBibTeX
External governance improves intra-firm resource allocation.

“The Direct Investment Income Puzzle”
PaperBibTeX
The official statistics – whether the published aggregates or the confidential microdata – do not support the longstanding view that US direct investment abroad outperforms foreign direct investment in the US.