Project description
A closer look at the impact of globalisation on inequality
The reality of financial globalisation and its intricate relationship with wealth inequality has become increasingly evident in our world. Who gains the most from this global wealth shift? The ERC-funded TUMAG project will answer this question. It will study why different social groups benefited from financial globalisation since the 1980s, and what would have happened if countries had chosen tax harmonisation over competition. This research promises to provide clarity by creating comprehensive statistics of global asset ownership and assessing the impact of international tax competition on inequality. It promises to be a compelling journey into the heart of economic coordination and its consequences. Ultimately, TUMAG seeks to redefine our perspective on international economic coordination.
Objective
Which social groups have most benefitted from financial globalization since the 1980s? How would inequality have evolved if, instead of tax competition, countries had chosen tax harmonization? The goal of this project is to address these questions in a unified framework and using new data. This proposal builds on my previous work and consists of two parts.
First, I will create prototype Global Flows of Funds: comprehensive statistics of the ownership of global assets by country of the owner and wealth group (e.g. amount of UK real estate owned by US households in the top 1% of the wealth distribution). Current macroeconomic and inequality data do not indicate which groups of the population own external assets in different countries. To remedy this, I will generalize my earlier work on the size and distribution of offshore wealth to all external assets, leveraging recent major improvements in global wealth data. The resulting database will provide a direct measure of the share of foreign assets in the portfolios of different wealth groups (e.g. fraction of the wealth of the US top 1% invested in foreign assets), bridging the gap between the study of inequality and financial globalization.
Second, using these Global Flows of Funds, I will estimate the effect of international tax competition on inequality. I will first provide a comprehensive quantification of the rise of international fiscal externalities since the 1980s, i.e. the extent to which residents of a given country have increasingly been subject to taxation in other countries (e.g. tax havens). Using multi-country models of wealth accumulation with heterogeneous agents calibrated using Global Flow of Funds data and other sources, I will then simulate the counterfactual evolution of inequality under different regimes of international tax coordination (e.g. full tax harmonization) since 1980. The ultimate objective is to renew thinking about the future of international economic coordination.
Fields of science (EuroSciVoc)
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
- natural sciences computer and information sciences databases
- social sciences sociology governance taxation
- social sciences other social sciences development studies development theories global development studies globalization
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Keywords
Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)
Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)
Programme(s)
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
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HORIZON.1.1 - European Research Council (ERC)
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Topic(s)
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Funding Scheme
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
HORIZON-ERC - HORIZON ERC Grants
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Call for proposal
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
(opens in new window) ERC-2022-COG
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Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.
75014 Paris
France
The organization defined itself as SME (small and medium-sized enterprise) at the time the Grant Agreement was signed.
The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.