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Economics

Selected Works

Sebastien J Bradley

Selected Works

Articles 1 - 6 of 6

Full-Text Articles in Business

Investor Valuations Of Japan's Adoption Of A Territorial Tax Regime: Quantifying The Direct And Competitive Effects Of International Tax Reform, Sebastien J. Bradley, Estelle Dauchy, Makoto Hasegawa Dec 2017

Investor Valuations Of Japan's Adoption Of A Territorial Tax Regime: Quantifying The Direct And Competitive Effects Of International Tax Reform, Sebastien J. Bradley, Estelle Dauchy, Makoto Hasegawa

Sebastien J Bradley

Despite an extensive literature on the normative implications of different international tax regimes and an empirical literature addressing individual specific predictions, there exists little evidence encompassing the broad range of effects of taxing corporations' foreign-source income on a worldwide or territorial basis. This paper takes a more comprehensive quantitative approach by examining stock market reactions surrounding four events over the course of which Japan's 2009 adoption of a dividend exemption system was developed into proposed law. Using an event study methodology which leverages individual firm characteristics and accounts for contemporaneous financial market developments, we find that Japanese firms with less …

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Inattention To Deferred Increases In Tax Bases: How Michigan Homebuyers Are Paying For Assessment Limits, Sebastien J. Bradley Feb 2017

Inattention To Deferred Increases In Tax Bases: How Michigan Homebuyers Are Paying For Assessment Limits, Sebastien J. Bradley

Sebastien J Bradley

The Michigan property tax system gives rise to wide variation in taxable basis across comparable homes due to the application of acquisition-value based assessment limits. Exploiting the fact that the resulting differences in property tax liability are temporarily inherited by new homebuyers, I estimate the degree of capitalization of these largely-idiosyncratic tax differences in a setting free of many of the econometric problems that typically plague estimation of property tax capitalization in order to evaluate whether homebuyers understand the tax implications of their home purchases. Consistent with anecdotal evidence, I find that homebuyers are woefully inattentive to the temporary nature …

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Round-Tripping Of Domestic Profits Under The American Jobs Creation Act Of 2004, Sebastien J. Bradley Jan 2016

Round-Tripping Of Domestic Profits Under The American Jobs Creation Act Of 2004, Sebastien J. Bradley

Sebastien J Bradley

The American Jobs Creation Act of 2004 provided a substantial tax benefit to U.S. multinational corporations in the form of a temporary 85 percent deduction for repatriated dividends. An unforeseen consequence of this tax holiday may have also been to induce firms to reallocate earnings toward low-tax foreign subsidiaries for immediate repatriation and thereby escape higher rates of corporate income taxation. I estimate this unconventional form of round-tripping to have increased reported earnings among repatriating affiliates by $17 billion, suggesting moderate aggregate effects of a large temporary reduction in the repatriation tax on short-run income reallocation activity. Results involving measures …

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Cross-Country Evidence On The Preliminary Effects Of Patent Box Regimes On Patent Activity And Ownership, Sebastien J. Bradley, Estelle Dauchy, Leslie Robinson Nov 2015

Cross-Country Evidence On The Preliminary Effects Of Patent Box Regimes On Patent Activity And Ownership, Sebastien J. Bradley, Estelle Dauchy, Leslie Robinson

Sebastien J Bradley

This paper evaluates the initial impacts of patent box regimes in light of their primary stated objectives: stimulating domestic innovation and retaining mobile patent income to limit base erosion. Despite their lack of nexus requirements, we find that patent box regimes yield a 3 percent increase in new patent applications for every percentage point reduction in the tax rate on patent income. We find no significant impact of these regimes on deterring outward cross-border attribution of patent ownership, or on attracting ownership of foreign inventions. Increased patenting activity hence appears focused on inventions involving co-located (domestic) patent owners and inventors.

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Investor Responses To Dividends Received Deductions: Rewarding Multinational Tax Avoidance?, Sebastien J. Bradley Oct 2013

Investor Responses To Dividends Received Deductions: Rewarding Multinational Tax Avoidance?, Sebastien J. Bradley

Sebastien J Bradley

Central to the debate over U.S. international tax reform is understanding how multinational tax avoidance behavior might respond to a reduction in taxes on repatriated foreign-source earnings. Beginning in early 2009, several attempts have been made to re-institute a temporary 85 percent dividends received deduction that would have reduced such taxes for U.S. multinational corporations. Despite an intense lobbying effort, the measure was ultimately cast aside in late 2011, temporarily yielding to the criticism, in part, that the original such provision enacted under the American Jobs Creation Act of 2004 offered a generous reward for international tax avoidance. Exploiting the …

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Property Tax Salience And Payment Delinquency, Sebastien J. Bradley Jul 2013

Property Tax Salience And Payment Delinquency, Sebastien J. Bradley

Sebastien J Bradley

Despite only modest supporting evidence, shocks to households' personal finances are commonly cited as one of the principal causes of homeowner defaults. In this paper, I investigate the extent to which different component sources of annual variation in property tax obligations influence the probability and magnitude of property tax delinquency|a precursor to mortgage default. Under Michigan's system of property tax limitations, rational homeowners should readily anticipate changes in tax liability, making such changes an unlikely cause of delinquency, regardless of the underlying source. Looking at tax payment records for the city of Ann Arbor, Michigan for the period 2006-2009, I …

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