This paper provides new evidence on the effects of taxes on the cost of capital and investment based on panel data of … shows that the user cost (and hence taxes) is a relevant determinant of investment behavior (with an estimated elasticity of … investment with respect to the user cost of capital which ranges from -0.199 to -0.217). However the careful modeling of tax …

Investment across the euro area remains below its pre-crisis level. Its performance has been weaker than in most …, corporate leverage, and uncertainty. There is a considerable cross country heterogeneity in terms of both investment dymanics … and its determinants. Based on the findings of this paper, investment is expected to pick up as the recovery strengthens …