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"The Low Income Housing Tax Credit (LIHTC) represents a novel tax expenditure program that employs "investable" tax credits to spur production of low-income rental housing. While it has grown into the largest source of new affordable housing in the U.S. and its structure is now being replicated in other programs, the LIHTC has also drawn skepticism and calls for its repeal. This paper outlines a conceptual framework for exploring the conditions under which investable tax credits may be the most effective mechanism to deliver a production subsidy and discusses the desirability of employing investable tax credits in other policy domains. Estimates of tax expenditures under this program are provided and efficiency costs, distributional issues, and the likely effects of reforms to tax provisions such as the AMT are considered"--National Bureau of Economic Research web site

Contributed articles presented earlier at a national symposium held at Ahmedabad in 2002 on women, architectural designs, and space; also includes architectural renderings

This paper employs heterogeneity in institutional shareholder tax characteristics to identify the relationship between firm payout policy and tax incentives. Analysis of a panel of firms matched with the tax characteristics of the clients of their institutional shareholders indicates that "dividend-averse" institutions are significantly less likely to hold shares in firms with larger dividend payouts. This relationship between the tax preferences of institutional shareholders and firm payout policy could reflect dividend-averse institutions gravitating to low dividend paying firms or managers adapting their payout policies to the interests of their institutional shareholders. Evidence is provided that both effects are operative. Instrumental variables analysis indicates that plausibly exogenous changes in payout policy result in shifting institutional ownership patterns. Similarly, exogenous changes in the tax code indicate that as the tax cost of paying dividends changes, managers alter their dividend policy to serve their institutional shareholders.

Investors can access foreign diversification opportunities through either foreign portfolio investment (FPI) or foreign direct investment (FDI). By combining data on US outbound FPI and FDI, this paper analyzes whether the composition of US outbound capital flows reflect efforts to bypass home country tax regimes and weak host country investor protections. The cross-country analysis indicates that a 10% decrease in a foreign country's corporate tax rate increases US investors' equity FPI holdings by 21%, controlling for effects on FDI. This suggests that the residual tax on foreign multinational firm earnings biases capital flows to low corporate tax countries toward FPI. A one standard deviation increase in a foreign country's investor protections is shown to be associated with a 24% increase in US investors' equity FPI holdings. These results are robust to various controls, are not evident for debt capital flows, and are confirmed using an instrumental variables analysis. The use of FPI to bypass home country taxation of multinational firms is also apparent using only portfolio investment responses to within-country corporate tax rate changes in a panel from 1994 to 2005. Investors appear to alter their portfolio choices to circumvent home and host country institutional regimes.

This paper investigates how taxes influence portfolio choices by exploring the response to the distinctive treatment of foreign dividends in the Jobs and Growth Tax Relief Reconciliation Act (JGTRRA). JGTRRA lowered the dividend tax rate to 15% for American equities and extended this tax relief only to foreign corporations from a subset of countries. This paper uses a difference-in-difference analysis that compares US equity holdings in affected and unaffected countries. The international investment responses to JGTRRA were substantial and imply an elasticity of asset holdings with respect to taxes of -1.6. This effect cannot be explained by several potential alternative hypotheses, including differential changes to the preferences of American investors, differential changes in investment opportunities, differential time trends in investment or changed tax evasion behavior.

These case studies offer a unique perspective on international corporate finance. Theyll help you understand international financial markets, including the instruments and techniques used in the foreign exchange market, monetary policy and international asset allocation. Youll also learn about the decision-making that goes into formulating an appropriate foreign exchange hedging strategy, how to finance multinational operations, cross-border mergers and leveraged buy-outs, and much more. Order your copy today.

State Formation and Radical Democracy in India analyzes one of the most important cases of developmental change in the twentieth century, namely, Kerala in southern India and begs the question of whether insurgency among the marginalized poor can use formal representative democracy to create better life chances. Going back to pre-independence, colonial India, Manali Desai takes a long historical view of Kerala and compares it with the state of West Bengal, which like Kerala has been ruled by leftists but has not had the same degree of success in raising equal access to welfare, literacy, and basic subsistence. This comparison brings the role of left party formation and its mode of insertion in civil society to the fore, raising the question of what kinds of parties can effect the most substantive anti-poverty reforms within a vibrant democracy. This book offers a new, historically based explanation for Kerala's post-independence political and economic direction.

An evil genius for just a foolish one? -- The Mint Assayor's son -- The trouble with money -- Pound on Pound -- War and the descent into despair -- Pound foolish?