An evolutionary approach to international political economy: the case of corporate tax avoidance

Corporate tax avoidance is both widespread and diverse in its practical mechanics. The scope of the phenomenon often leads economists to conclude that in the jungle of economic competition, tax planning (or optimisation) is among the necessary tools to ensure the survival of the fittest. This theory is increasingly associated with a Darwinian theory of economic evolution. In this paper, I develop a contrasting framework of the evolutionary political economy of corporate tax avoidance. Analysing core concepts of Old Institutionalist Economics (OIE), I examine the core drivers of corporate tax avoidance in a globalised system of states. The major contrast, I find, is between that of the corporate and legal personality and the institutional environment in which it operates. Historically, each corporate entity has been considered a separate legal person, yet a series of ‘mutations’ of incorporations laws created a widening gap between theory and reality, and these, in turn, give rise to tax arbitrage. Narrowing this gap, however, impinges on another venerable historical institution, the institution of sovereignty and sovereign inequality

The Self-Selection of Democracies into Treaty Design: Insights from International Environmental Agreements

Generally, democratic regime type is positively associated with participating in international environmental agreements. In this context, this study focuses on the legal nature of an agreement, which is linked to audience costs primarily at the domestic level that occur in case of non-compliance and are felt especially by democracies. Eventually, more legalized (\hard-law") treaties make compliance potentially more challenging and democratic leaders may anticipate the corresponding audience costs, which decreases the likelihood that democracies select themselves into such treaties. The empirical implication of our theory follows that environmental agreements with a larger share of democratic members are less likely to be characterized by hard law. This claim is tested using quantitative data on global environmental treaties. The results strongly support our argument, shed new light on the relationship between participation in international agreements and the form of government, and also have implications for the \words-deeds" debate in international environmental policy-making

European unification: a new proposal

My contribution presents a possibility to unify Europe based on newly emerging political units focused on solving problems rather than on historically given nation states. These Endogenous Political Entities (EPE), as they shall be called, are better suited to reach the goals of European unification as they strengthen the fundamental European values of variety and freedom. I make three propositions: to base the unification of Europe on nation states is unfortunate as the latter are responsible for the political disaster of the two World Wars; the unification must proceed in a problem-oriented manner. The constitution of Europe must allow and promote EPE to emerge specifically to deal with particular problems; the new political units can be introduced in marginal steps. Over time, a flexible and dynamic net of political entities will arise taking care of the large economic, social and cultural diversity in Europ