Link, Sebastian; Menkhoff, Manuel; Peichl, Andreas; … - 2023
This paper estimates the causal effect of corporate tax hikes on firm investment based on more than 1,400 local tax … study how tax hikes induce firms to revise their investment decisions. On average, the share of firms that invest less than … previously planned increases by three percentage points after a tax hike. This effect is twice as large during recessions …