Taxes and Firm Investment
|Title:||Taxes and Firm Investment||Authors:||Arin, K. Peren; Devereux, Kevin; Mazur, Mieszko||Permanent link:||http://hdl.handle.net/10197/11868||Date:||Jan-2021||Online since:||2021-01-22T17:07:17Z||Abstract:||We investigate the firm level investment responses to narrative shocks to average personal and corporate tax rates using a universal micro dataset of publicly traded U.S firms for the post- 1962 period. By allowing for heterogeneous effects over the business cycle and accompanying monetary policy regime, as well as over firm-level characteristics, we show that : (i) corporate tax multipliers are negative overall, but this result is driven by smaller firms who face larger borrowing constraints, especially during high-unemployment periods or when the accompanying monetary policy is contractionary; (ii) while the magnitude and the significance of personal income tax multipliers are smaller on the aggregate, there is some evidence of positive personal tax multipliers in high-unemployment state by large (dividend-paying) firms, which is consistent with the recent literature.||Type of material:||Working Paper||Publisher:||University College Dublin. School of Economics||Start page:||1||End page:||25||Series/Report no.:||UCD Centre for Economic Research Working Paper Series; WP2021/02||Copyright (published version):||2021 the Authors||Keywords:||Investment; Taxation; Fiscal policy; Fiscal multiplier||JEL Codes:||C33; C53; E62; G32||Language:||en||Status of Item:||Not peer reviewed||This item is made available under a Creative Commons License:||https://creativecommons.org/licenses/by-nc-nd/3.0/ie/|
|Appears in Collections:||Economics Working Papers & Policy Papers|
Show full item record
If you are a publisher or author and have copyright concerns for any item, please email email@example.com and the item will be withdrawn immediately. The author or person responsible for depositing the article will be contacted within one business day.