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This Working Paper assesses the impact on investment of a reduction in corporate taxes and the impact on employment, labor formality, and growth of a reduction in non-wage labor costs in Colombia. First, and following Hall and Jorgensen (1967), we estimate an investment function, which depends...
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approaches, we estimate the effects on growth of the most important taxes for the region, namely personal income tax, corporate … income tax, general taxes on goods and services, including value added and other sales taxes, and revenues from natural … panel data estimation. We find that, for the most part, personal income tax does not have the expected negative effect on …
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