Optimal corporation tax : an I.O. approach

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Title: Optimal corporation tax : an I.O. approach
Authors: Colombo, Luca
Labrecciosa, Paola
Walsh, Patrick P.
Permanent link: http://hdl.handle.net/10197/973
Date: Oct-2005
Abstract: Our IO approach links optimal effective corporation tax rates to the nature of sunk costs within industries. Theory predicts that optimal effective corporation tax rates will be negatively related to industry specific sunk cost, and hence industry concentration. Governments should tax industries with monopolistic power softly. Evidence suggests that this Schumpeterian (1942) principle of corporate taxation was used widely across industries in France, Italy and the UK in the 1990s.
Type of material: Working Paper
Publisher: Trinity College Dublin. Institute for International Integration Studies (IIIS)
Series/Report no.: IIIS Discussion Papers; No. 97
Copyright (published version): Institute for International Integration Studies, 2005
Keywords: Effective corporation tax rateIndustry sunk costsIndustry concentration
Subject LCSH: Corporations--Taxation
Sunk costs
Industrial concentration
Other versions: http://www.tcd.ie/iiis/documents/discussion/pdfs/iiisdp97.pdf
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Politics and International Relations Research Collection
Geary Institute Research Collection

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