Multinational companies can avoid paying taxes by shifting profits earned via licensing of their intellectual property from high tax to low tax countries. Ana Maria Santacreu (Federal Reserve Bank of St. Louis) explains how and explores what would happen to these companies’ licensing and R&D decisions if policymakers closed that loophole (28:39).

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• Santacreu, Ana Maria. Forthcoming. International Technology Licensing, Intellectual Property Rights and Tax Havens. The Review of Economics and Statistics.