Félix Domínguez Barrero () (Universidad de Zaragoza) Julio López Laborda () (Universidad de Zaragoza) Fernando Rodrigo Sauco () (Universidad de Zaragoza)
Abstract
The paper estimates the impact that the differences of taxation in the Spanish Personal Income Tax (IRPF) and Corporate Income Tax (IS) cause in the division of the economic activity between corporate and noncorporate firms. The exercise is based on the approach proposed by Mackie-Mason and Gordon (1997), who specifies the relation between both taxes by means of the construction of a variable that measures the “fiscal distortion” to incorporating. In our research, the fiscal distortion is estimated from the calculation of the “average effective tax rates” for the sole and social proprietors, adapting the methodology established by Devereux and Griffith (1998b). The paper concludes that the tax factors do not turn out to be significant in the organizational decisions of the firms in Spain, and that are the nontax and macroeconomic aspects those that explain the weight of the corporate firms in the managerial activity.
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Volume (Year): 174 (2005) Issue (Month): 3 (September) Pages: 55-86 Download reference. The following formats are available: HTML
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Find related papers by JEL classification: H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Robert Carroll & Douglas Holtz-Eakin & Mark Rider & Harvey S. Rosen, 2001.
"Personal Income Taxes and the Growth of Small Firms,"
NBER Chapters,
in: Tax Policy and the Economy, Volume 15, pages 121-148
National Bureau of Economic Research, Inc.
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