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I’ll Be Here All Week! The Effect of Autocratic Time Horizons on Signing and Content of Double Tax Agreements

Authors: Wood, Julie Kristine;

I’ll Be Here All Week! The Effect of Autocratic Time Horizons on Signing and Content of Double Tax Agreements

Abstract

Balancing the preferences of developing and developed countries is at the core of current debates concerning international taxation. This study takes a closer look at the domestic actors involved in economic decision making, to better understand why some developing countries engage in the international tax treaty regime, and why others refrain from doing so. It investigates a question not yet covered by the research on double tax agreements. Namely, the effect of an autocrat's expected length of tenure on signing and content. The analysis is based on a Heckman model, to correct for nonrandom sample selection and a brand new Tax treaties explorer dataset (ICTD), covering 2533 double tax agreements in 118 low and lower income countries. This study finds that autocrats with longer time horizons are more likely to sign a double tax agreement, and that this effect is even stronger when the wealth of signatories is more asymmetric. There is too much uncertainty in the results to conclude on how autocratic time horizons affect the content of double tax agreements. However, it might seem as if autocrats with longer time horizons tend to sign double tax agreements with lower thresholds for what constitutes permanent establishment.

Country
Norway
Related Organizations
Keywords

tax treaty, bureaucratic capacity, 330, credible commitment, Double tax agreement, asymmetric treaties, autocratic time horizon, international economic agreement, leadership failure

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
Green