This report looks at how corporate income taxes have changed over the past two decades, what incentives they provide for domestic and international investment, and whether changes in the international economy have helped shape these reforms.

We present a comparable set of results on the monetary transmission channels on firm investment for the four largest euro-area countries (Germany, France, Italy and Spain). With particularly rich micro datasets for each country containing over 215,000 observations from 1985 to 1999, we explore...