This study simulates with two dynamic models the macroeconomic and public finance outcomes of a reduction in the corporate income tax rate in Finland. FOG-model is a dynamic CGE model, which is calibrated to the Finnish economy. NiGEM is a multi-country macroeconometric model. The results show...

The report looks at investment activity in Finland by industries and types of investment, and makes international comparisons. Investment rate (fixed investment in relation to GDP) fell in Finland in the early 1990s from an internationally high level to the average West European rate. Among key...