Research

"Policy Effects of International Taxation on Firm Dynamics and Capital Structure", (Job Market Paper), [Latest version: 16th January 2018] - PaperSlidesCROWE Policy Brief
Abstract: 
I develop and calibrate a dynamic industry equilibrium model with heterogeneous firms to study the impact of the U.S. moving from its current worldwide taxation system for multinationals to a territorial system. I study the impact on firm investment, capital structure, payout policy and tax revenues. Firms in the model make both intensive and extensive margin choices regarding supplying foreign goods markets. I solve the model under both worldwide and territorial systems and compare the stationary equilibria. The results show that aggregate U.S. firm productivity rises and more U.S. firms operate as multinationals. Domestic and overseas production by U.S. firms rise and firms borrow more and pay larger dividends to shareholders. These effects on firm variables are coupled with a rise in U.S. Government tax collections and an increase in U.S. welfare.

"Would a Move to a U.S. Territorial Tax System Increase Earnings Shifting?" (Preliminary) [Latest version: June 2017] -  Paper
Abstract:
This paper develops and solves a model of a multinational firm, who has the option to shift its earnings to a low-tax haven nation. Given the behaviour of the multinational firm, the haven nation solves a Ramsey optimal taxation problem, which involves choosing corporate and personal tax rates. I calibrate the model to a U.S. multinational that shifts its earnings to Bermuda: the classic example of a tax haven. Using the model, I find that if the U.S. moves to a territorial tax system, Bermuda will optimally respond by choosing a positive corporate tax rate, which will lead to a decrease in the earnings shifted by U.S. multinationals. 

"Effectiveness of the Australian Fiscal Stimulus Package: a DSGE Analysis", (with Shuyun May Li), 2015, Economic Record, 92, 94-120 - External Link
Abstract:
We develop and estimate a small open economy dynamic stochastic general equilibrium model to investigate the effectiveness of the Australian fiscal stimulus package introduced in the aftermath of the global financial crisis (GFC). The estimated model implies a fiscal multiplier of 0.9 on impact and 1.26 with one-year monetary accommodation. Utilising the estimated shocks – in particular, the fiscal shocks that mimic the stimulus transfers – we conduct several counterfactual policy experiments. Our results suggest that the stimulus transfers were almost equally important as the concurrent monetary easing actions in helping the Australian economy to avoid a recession after the GFC.

"Cross-Border Effects of U.S. International Tax Policy". 

"A Re-Examination of Financing Constraints and Investment to Cash Flow Sensitivity", (with Shuyun May Li).