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This chapter examines how digitalization reshapes the nature of the MNE. It shows that digital MNEs operate through distinct value-creation logics based on platforms, data, and network effects, enabling rapid international expansion with comparatively limited physical assets abroad. Drawing on comparative analysis, the chapter contrasts traditional and digital MNEs in terms of internationalization motives, asset configuration, process organization, and governance structures. It introduces indicators such as the FDI lightness index and internet intensity to capture the asset-light and scalable nature of digital firms. At the same time, digital MNEs face new regulatory and political tensions, particularly regarding taxation, data sovereignty, and market dominance. The chapter develops typologies of digital MNEs and situates their rise within broader structural transformations of the global economy. It concludes that digitalization does not eliminate spatiality but reconfigures it, producing new patterns of concentration, dependency, and contestation in international business.
Even if a state is democratic, it will fail its citizens if it cannot raise sufficient revenue or distribute public goods effectively. Keeping the State Weak points to widespread economic informality as a key feature that keeps poor democracies unstable. Jessica Gottlieb traces the colonial roots of this pernicious type of embedded informality and theorizes how it impacts both state citizens and state actors. Quantitative and qualitative evidence shows how widespread informality prevents a would-be middle class from coordinating programmatic claims on the state and how informal intermediaries who benefit from their status resist attempts at formal state-building. The book concludes with a sobering perspective on the potential for formalization campaigns to initiate socio-political transitions and more optimistic suggestions for where a programmatic transition might originate.
In Leviathan Hobbes’s attention newly focuses on the practice of governing. There are five new chapters (22–-25, 27–28) on matters of government structure and policy which would concern a real ruler – in the obvious, immediate instance, Charles, the Prince of Wales. Versus the familiar theoretical question of whether Hobbes’s absolute ruler would have reason to govern well, good government is the subject of these chapters in a more practical vein. Like the policy binders prepared for incoming governments today, they advise on such domestic programmes as taxation and criminal justice and counsel the ruler to maintain control in relationships with subordinates. First, it is of interest to compare Hobbes’s ideas with Stuart and Tudor policies so as to assess their currency: How modern was his political thinking? Second, from a philosophical angle, these discussions are salient to current interpretations of Leviathan as a model of nonideal theory. Hobbes is telling rulers how to create a decent state in the context of real-world politics, a state that – albeit in necessarily imperfect ways – serves the public welfare, their subjects’ good, and their own.
This chapter asks whether increasing electoral competitiveness in weak states might be a way to induce pressure for state-building and the provision of public goods. The evidence suggests it cannot: that when politics do not cleave along programmatic lines, electoral competition is unlikely to have these salutary effects. A case comparison of two public bureaucracies charged with tax collection in contexts of widespread economic informality and clientelistic electoral politics illustrates how different levels of electoral competition can produce very different incentives to invest in state capacity. Interviews with current and former members of the Internal Revenue Service in Dakar and Lagos suggest that greater electoral competition in Senegal weakened political will to regulate and tax the informal sector, while longer time horizons of ruling party elites in Lagos increased the perceived future benefits of making costly investments in fiscal capacity. Using a panel dataset of 31 countries from 1870 to 2010, I then show that increases in electoral competition reduce subsequent tax revenue collection, but only in polities where elections cleave along less programmatic lines.
Chapter 5 continues the overview through a different analytical lens. It investigates the EU’s toolbox, describing and classifying the regulatory tools used by the EU legislature across the different lifestyles. It identifies four main types of interventions: ban and composition requirements, tax and price measures, rules on advertising and promotion and rules on mandatory and voluntary information. Beyond this systematic description and classification, the chapter serves three aims. First, it confronts the regulatory tools used with the stated objectives of EU lifestyle policy, assessing their adequacy and suggesting possible reforms. Second, it highlights the significant regulatory disparities existing between lifestyle risk factors, critically evaluating the justifications for such differential treatment. Third, it shows how health and internal market objectives are intertwined in EU lifestyle policy, generating legal frictions.
This study examines the role of business in tax policymaking through the lens of business power, focusing on the 1950 Tax Revision in the Netherlands as a historical case. The revision policy process unfolded in the context of post-war economic reconstruction and industrialization and became a key site of contention between fiscal and economic policy objectives, in which business interests were strongly represented. Combining historical methodology and process tracing with theoretical perspectives of business power, the study identifies the mechanisms through which business-government interactions operated in the tax policy process. Corporate actors advocated for fiscal relief by exploiting intra-governmental differences and leveraging their structural economic importance and close connections to the government. Crucially, they constructed a narrative framing fiscal relief as a necessity for industrial development, thereby using the reconstruction context to advance their interests.
How does political power shape tax collection? This article addresses this question by focusing on the most prominent fiscal phenomenon of the recent decades – the rise of the value-added tax (VAT). Drawing on insights from the political economy literature, I test the argument that governments with strong legislative support raise more revenues from the VAT as an effective tool to improve public finances in the short term. Results from a global sample of democracies between 1990 and 2020 provide support for this argument. The effect is particularly pronounced among developing countries, where the VAT is often the tax type that accounts for the largest share of public revenues. These findings illustrate the role of domestic political dynamics in shaping the rise of the VAT to its status as a primary revenue source for the modern tax state.
Ageing of the population is an ineluctable process with major implications. We review effects of ageing on housing markets and related policy issues. Demographic effects are detectable for housing, with the working population tending to drive prices up while retired groups restrain it but only to a limited degree. The elderly desire bequests and precautionary saving and prefer not to sell or borrow against existing property. Among policy issues are availability of equity extraction loans, transaction costs for elderly households wishing to trade down and factors underlying availability of alternative and more suitable housing for elderly people.
This chapter examines Congress’s taxing and spending powers, arguing that the Constitution’s first clause in the enumeration of powers originally granted only a power to tax for national purposes, not an independent power to spend for the general welfare. Textual and historical evidence, including from the Articles of Confederation and Committee of Detail, supports this as the best reading, with spending permissible only under the Necessary and Proper Clause to further enumerated powers. The chapter critiques modern doctrine, which recognizes a broad spending power allowing Congress to influence state policies indirectly, as in South Dakota v. Dole, by attaching conditions to funds. It proposes a test distinguishing genuine spending (e.g., disaster relief) from coercive regulatory attempts (e.g., conditioning funds on state policy changes), which usurp state functions. This formalist approach, rooted in the Constitution’s federalist structure, seeks to limit Congress’s ability to undermine state autonomy through expansive spending, preserving the original balance of federal and state authority critical to the Constitution’s enduring success.
Fiscal states, defined by their capacity to tax and borrow, had to negotiate the dilemma of economic interdependence – how to balance the benefits of economic interdependence with the desire for as much strategic autonomy as possible. How different governments negotiated this dilemma revealed much about their position within the international economic order. Some states sought to repatriate debt by borrowing from their own citizens, others saw advantages in borrowing abroad. Fiscal capacity was shaped by economic interdependence and became yet another site of competition between states. States compared their fiscal capacity by looking at bond yields, savings rates, and trade. New categories of comparison such as national income emerged in the context of great power competition.
Technological leaps in the algorithmic processing of information are providing financial actors with new opportunities for transnational financial and legal management that optimize asset allocation. Global professional service firms are actively developing TaxTech to capture this market. How will this transformation change relationships between suppliers, clients, and regulators? A key development is a move away from deliberate opacity for secrecy purposes into systems that search for the optimal exploitation of legal affordances. This signals a transformation of the assumed information asymmetries between suppliers, clients, and regulators that sits at the heart of the Global Wealth Chains framework. It empowers owners of data and code. Here we reflect on this transformation, considering three examples of how algorithmic technologies are being used for international tax purposes: blockchains for instant trade verification; generative AI for automation of tax compliance; and algorithmic scenario planning for tax avoidance. These examples show an important shift in the governance of wealth chains – the creation of new forms of infrastructural power through which algorithmic models may become central nodes in tax governance.
This engaging Cambridge Companion introduces readers to the richness, complexity and diversity of one of the most important periods in Chinese history: the Song dynasty, 960–1279 CE. Bringing together leading scholars from Asia, Europe, and the United States, it provides an overview of key institutions, political, economic and military history, while also delving into the everyday lived experience of medieval China. Together, the authors create a vividly detailed and intimate portrayal of people, places, ideas, and material culture at both the 'centre' and 'margins' of Song society. They explore the lives of people and groups from diverse backgrounds, as well as places and things from the Yellow River to the publication of Buddhist prints and medical formularies. This volume highlights the brilliant accomplishments of Song scholarship in recent decades and provides an inspirational introduction for future researchers.
This study investigates a hybrid variable annuity (VA) contract that combines guaranteed minimum accumulation benefit (GMAB) and guaranteed minimum death benefit (GMDB) riders, with the added flexibility for policyholders to surrender prior to maturity. The contract guarantees the return of premiums or a greater rolled-up value at either maturity or death. We propose a novel two-account structure: an investment account tied to the underlying fund, from which management fees are deducted, and a separate cash account for the deduction of insurance fees for funding the GMAB and GMDB riders. This design generalizes the conventional single-account model by decoupling fee sources. From the policyholder’s perspective, we derive actuarially fair insurance charges and show that the two-account framework delivers substantially lower guarantee fees compared to the classical design, improves contract characteristics by reducing the effective moneyness of embedded guarantees, thereby discouraging early surrenders and mitigating mortality risk mispricing. Furthermore, we show that bundling survival and death benefits results in higher fair fees than the sum of standalone riders, thereby enhancing the product’s appeal to insurers. The analysis also incorporates taxation considerations up to a predefined preservation age, reflecting regulatory and practical product design constraints.
This article examines the cyclical nature of monetisation and demonetisation in Taizhou (台州) during the Song and Yuan dynasties. By analysing local fiscal policies, taxation systems, and economic structures, it reveals a complex process of monetary evolution. The Song Dynasty saw significant fiscal monetization, driven by military needs and implemented through innovative tax systems. However, the Yuan Dynasty witnessed a partial reversal, with a shift towards physical taxation and reduced monetary demands. This research highlights the interplay between central government policies, local fiscal structures, and broader economic trends. It challenges linear models of economic development and emphasises the importance of regional variations in understanding historical monetisation processes.
This Element maps the relationship between taxation and social policy from a comparative and historical perspective. It critically reviews studies in fiscal sociology, history, political science, and political economy to highlight blind spots in the body of knowledge that future studies could explore. It shows that studying the revenue side of social policy offers compelling answers to central questions tackled in welfare state scholarship and addresses questions such as: What explains the introduction and timing of social programs? How can we understand processes of welfare state expansion and retrenchment? What determines the redistributive capacity of welfare states? What accounts for variations in redistributive capacity between groups and across generations in different countries? While bringing in the financing side of social policy complements prevailing accounts in the welfare state literature, studying financing can also transform how we understand social policy. This title is also available as Open Access on Cambridge Core.
Attempts to register and control the populations of the east left a documentary record that was often extremely local. Provincial subjects proved astute readers and compilers of local documentation, which they rearranged in order to make claims of right. These claims can be mined for their underlying legal ideologies. Provincial subjects imagined law not as an abstract system, but as a running list of privileges and disabilities. Rights emerged from having the most correct or most persuasive hermeneutic for making sense of collections of documents in dialogue with officials, through the process of generating legal paperwork. Archives were not merely repositories of external facts about the world: they were collections of arguments that could be made. Law emerged from the collaborative process of claiming such rights.
Amidst calls for a return to the high tax rates of the 1950s and 60s, this book examines the tax dodging that accompanied it. Lacking political will to lower the rate, Congress riddled the laws with loopholes, exemptions, and preferences, while largely accepting income tax chiseling's rise in American culture. The rich and famous openly invested in tax shelters and de-camped to exotic tax havens, executives revamped the compensation and retirement schemes of their corporations to suit their tax needs, and an industry of tax advisers developed to help the general public engage in their own form of tax dodging through exaggerated expense accounts, luxurious business travel on the taxpayer's dime, and self-help books on 'how the insider's get rich on tax-wise' investments. Tax dodging was a part of almost every restaurant bill, feature film, and savings account. It was literally woven into the fabric of society.
John Rawls proposed a theory of justice for the basic structure of society. Surprisingly, his suggestions for tax institutions were not well articulated. Rawls’s principles of justice do not prescribe a unique set of tax recommendations, but his remarks on tax matters reflect his vision of society as a cooperative venture in which everyone must work. This paper makes two contributions. First, it offers a chronological, systematic, and contextual analysis of what Rawls wrote on taxation. Rawls’s comments on taxation reveal his lifelong concern for preserving market incentives and his rejection of ability-to-pay as a principle of taxation. Second, the paper argues that some of Rawls’s tax proposals belong to nonideal theory because they depend on a conception of individuals in tension with the conception of moral persons developed in his theory.
This chapter shows how the Legislative Advisory Commission, a reviser type of legislature established by factions with high levels of unity and embeddedness during Argentina’s last dictatorship, amended and rejected a high share of government bills, and forced the executive to reverse, temper, or withdraw important initiatives on taxation, budgetary policy, and defense policy, which complicated the implementation of economic adjustment programs and facilitated the takeover of government by the hardliners, which ultimately led to the defeat in the Falklands War and the collapse of the authoritarian regime.
This chapter shows how the Brazilian Congress, operating in a dictatorship in which factions had unstable and uneven levels of unity and embeddedness, oscillated betwen working as a reviser and as a notary legislature. Quantitative analyses and case studies of tax policy, budgetary policy, and constitutional reforms show that while Congress was institutionally empowered to amend and reject government initiatives, it was more likely to exercise its lawmaking powers against initiatives sponsored by nondominant factions that were less able to retaliate, and less likely to be able to sustain its decisions against the executive when the presidency was controlled by a military faction with high levels of unity and embeddedness. Still, repeatedly probing the boundaries of representation, Brazilian legislators managed to frustrate important economic policies and to force the military into initiating the transition to democracy.