Dominika Langenmayr of KU Eichstatt-Ingolstadt, WU Vienna, and CESifo reviews “The Golden Passport: Global Mobility for Millionaires” by Kristin Surak. The EconLit abstract of this book begins: “Examines the global citizenship market, chronicling the emergence of golden passport schemes, investigating the countries, brokers, and wealthy investors that make up the citizenship by investment (CBI) market, and offering the perspectives of locals and investors in golden passport countries.”

We study whether the corporate tax system provides incentives for risky firm investment. We analytically and empirically show two main findings: first, risk-taking is positively related to the length of tax loss periods because the loss rules shift some risk to the government; and second, the tax rate has a positive effect on risk-taking for firms that expect to use losses, and a weak negative effect for those that cannot. Thus, the sign of the tax effect on risky investment hinges on firm-specific expectations of future loss recovery.