This paper investigates the impact of fiscal policy on profits using panel data for 19 high-income OECD countries … during the period 1975-1999. We estimate a profit equation in which profits depend on a set of fiscal variables. Our … capital expenditures are associated with higher profits, while expenditures on wages and salaries deteriorate profits. At the …

royalties. This paper reviews the core issues that arise, in terms of both efficient rent extraction and correcting various … to the time consistency problem that is central to the extractive industries, but royalties are (although time consistent …