@techreport{89b4e31442a248b5b34c9cebf61fa849,
title = "Global Spillovers of Taxation in the Online Advertising Market. Theory and Evidence from Facebook.",
abstract = "We analyse the effect and welfare implications of taxing multinational digital platforms on the global online advertising market. Using a novel dataset on advertising prices and product preferences of users from Facebook in OECD countries, jointly with international trade data, we show that an increase in the platform{\textquoteright}s corporate tax rate in some countries had a strong effect on advertising prices therein. The increase spills over to other countries through pre-existing international trade linkages. This result is consistent with our theoretical model, which shows that a digital platform reduces the supply of ads to advertisers from countries where taxation increases.",
keywords = "online advertising, multi-sided platforms, tax incidence, product interests, international trade",
author = "Andrea Lassmann and Federica Liberini and Antonio Russo and Angel Cuevas and Ruben Cuevas",
year = "2020",
month = may,
language = "English",
series = "CESIFO Working Paper",
number = "8149",
type = "WorkingPaper",
}