Corporate marginal tax rate, tax loss carryforwards and investment functions: empirical analysis using a large German panel data set
AbstractThis study is the first empirical analysis to investigate the relationship between the investment behaviour of firms resident in Germany and the empirically determined marginal tax rates developed by John R. Graham. It is based on the Bundesbank's corporate balance sheet statistics for the period 1971-2002. In an autoregressive distributed lag model, the marginal tax rate is shown to be significant, with an elasticity of between 0.1 and 0.2. An error correction model does not produce any plausible results for the marginal tax rate. Graham's marginal tax rates are a complement to the methods typically used to determine the effective marginal tax rates and effective average tax rates. --
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Bibliographic InfoPaper provided by Deutsche Bundesbank, Research Centre in its series Discussion Paper Series 1: Economic Studies with number 2007,21.
Date of creation: 2007
Date of revision:
Corporate marginal tax rate; tax loss carryforward; investment behaviour;
Find related papers by JEL classification:
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
This paper has been announced in the following NEP Reports:
- NEP-ACC-2007-09-30 (Accounting & Auditing)
- NEP-ALL-2007-09-30 (All new papers)
- NEP-DCM-2007-09-30 (Discrete Choice Models)
- NEP-EEC-2007-09-30 (European Economics)
- NEP-PBE-2007-09-30 (Public Economics)
- NEP-PUB-2007-09-30 (Public Finance)
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