Work in progress
"Taxes and the investment decisions of US multinationals", Michael P. Devereux, Ben Lockwood and Michela Redoano.
This paper uses data on the capital investment in different OECD countries of US multinationals. It explores the impact of taxation on the aggregate investment by such firms in each country. The main innovation is that the paper explicitly acknowledges the discrete decision of in which country to invest and the decision of how much to invest, conditional on the country chosen. Tax is likely to affect these decisions in different ways. This paper examines which form of tax rate -- and by implication, which type of decision -- is more important for overall investment expenditure.
"Between state competition in gasoline and tobacco taxes", Michael P.Devereux, Ben Lockwood and Michela Redoano.
This project uses a completely different data set, on excise duties on gasoline and tobacco in US states. We test for competition between neighbouring US states. This requires a rather different theoretical and empirical framework from the other papers. The data for this exercise has now been collected, and preliminary estimation has begun.