This paper evaluates the impact of the taxation system on factor costs, investment and economic activity. This is performed on the basis of detailed analysis of the Italian tax system and the production of own estimates of the user cost of capital to labour, which capture the contribution of tax...

This paper examines whether, and under what circumstances, tax incentives are the right policy tool to attract economic activity. It describes various types of tax incentives and factors that should be considered before their implementation. The paper also looks at certain elements of the...