tests. Overall, it is concluded that the tax stimulus analyzed was ineffective in promoting investment in Colombia. …This paper uses a yearly dataset of plant-level investment in Colombian firms during the period 1997 to 2007 to assess … significant correlation is found between the boom observed in investment and the adoption of the tax policy. However, the …

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 on the user cost of capital, one of whose determinants is the …