Showing 1 - 10 of 18
Persistent link: https://www.econbiz.de/10000742921
an entrepreneurial sector, the paper investigates the effects of taxes on the equilibrium level of entrepreneurship and … managerial advice. It considers dierential wage and capital income taxes, a comprehensive income tax, incomplete loss offset …
Persistent link: https://www.econbiz.de/10012470760
We propose a model consistent with two observations. First, the tax rates adopted by different countries are generally uncorrelated with their growth performance. Second, countries that drastically reduce private incentives to invest, severely hurt their growth performance. In our model, the...
Persistent link: https://www.econbiz.de/10012460188
Persistent link: https://www.econbiz.de/10013481045
This paper characterizes the dynamic effects of shocks in government spending and taxes on economic activity in the … the automatic response of taxes and spending to activity, and, by implication, to infer fiscal shocks. The results … negative effect. The multipliers for both spending and tax shocks are typically small. Turning to the effects of taxes and …
Persistent link: https://www.econbiz.de/10012471521
This paper examines the investment effects of tax subsidies for which some assets and not others are eligible. Distortionary tax subsidies encourage firms to concentrate investments in tax-favored assets profitability of investment and reducing payoffs to bondholders in the event of default....
Persistent link: https://www.econbiz.de/10012472196
In this paper, we summarize recent advances in the study of effects of tax policy on the fixed investment decisions of firms. We attempt to identify consensus where it has been achieved and to highlight important unresolved issues. In addition, we discuss the implications of recent findings for...
Persistent link: https://www.econbiz.de/10012473159
We use firm-level panel data to explore the extent to which fixed investment responds to tax reforms in 14 OECD countries. Previous studies have often found that investment does not respond to changes in the marginal cost of investment. We identify some of the factors responsible for this...
Persistent link: https://www.econbiz.de/10012473645
In models with irreversible investment, increasing uncertainty about prices has been shown to increase the required rate of return (hurdle rate) and delay investment (e.g., Pindyck, 1988). One serious form of uncertainty faced by firms, a form that policy makers could conceivably control, is tax...
Persistent link: https://www.econbiz.de/10012474139
conditions directly affect the incentive to invest. The estimates suggest that taxes have played an independent role in affecting …
Persistent link: https://www.econbiz.de/10012475396