Barro, Robert J.; Wheaton, Brian - 2019
the 1980s. C-corporate form is subject to a time varying tax wedge, which offsets the productivity benefits. In a …-normal. The tax wedge then determines the fraction of firms that opt for C-corporate status, the level of economy-wide output … (productivity), the share of total output generated by C-corporations, and the sensitivity of this share to the tax wedge. This …