Tax Uncertainty and Investment: A Cross-Country Empirical Investigation
AbstractAn empiricial investigation of uncertain tax policy and investment is crucial to a fuller understanding of the interplay between taxes and investment, especially given ambiguities in the limited theoretical literature. In this paper we model the time series of effective tax rates in several OECD countries using ARCH-GARCH models. We then incorporate the resulting tax rate volatility estimates in a panel regression model of investment per worker. We find that the volatility of tax rates has a significant negative impact on investment per worker in these countries.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University in its series International Center for Public Policy Working Paper Series, at AYSPS, GSU with number paper0105.
Length: 28 pages
Date of creation: 01 Apr 2001
Date of revision:
Contact details of provider:
Web page: http://aysps.gsu.edu/isp/index.html
Tax Uncertainty; Investment; Cross-Country Empirical Investigation;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Niemann, Rainer & Sureth, Caren, 2009. "Investment effects of capital gains taxation under simultaneous investment and abandonment flexibility," arqus Discussion Papers in Quantitative Tax Research 77, arqus - Arbeitskreis Quantitative Steuerlehre.
- Gries, Thomas & Prior, Ulrich & Sureth, Caren, 2007. "Taxation of risky investment and paradoxical investor behavior," arqus Discussion Papers in Quantitative Tax Research 26, arqus - Arbeitskreis Quantitative Steuerlehre.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Paul Benson).
If references are entirely missing, you can add them using this form.