IDEAS home Printed from
   My bibliography  Save this article

Corporate Income Taxation Effects On Investment Decisions In The European Union


  • Ioan Talpos

    (West University of Timisoara)

  • Ionel Vancu

    (West University of Timisoara)


The link between investment decisions undertaken by economic agents and corporateincome (profit) taxation is well documented in theoretical studies realized so far. But, the empiricalevidence is very mixed and do not provide clear answers regarding the magnitude of the taxationeffects on investment and the proper transmission channels for these effects. So, we propose toinvestigate the effects of corporate income (profit) tax burden on investment decision for a samplecomposed from EU Member States.

Suggested Citation

  • Ioan Talpos & Ionel Vancu, 2009. "Corporate Income Taxation Effects On Investment Decisions In The European Union," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(11), pages 1-51.
  • Handle: RePEc:alu:journl:v:1:y:2009:i:11:p:51

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Auerbach, Alan J. & Hassett, Kevin, 1992. "Tax policy and business fixed investment in the United States," Journal of Public Economics, Elsevier, vol. 47(2), pages 141-170, March.
    2. Hassett, Kevin A. & Hubbard, R. Glenn, 2002. "Tax policy and business investment," Handbook of Public Economics,in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 20, pages 1293-1343 Elsevier.
    3. Gareth D. Myles, 2009. "Economic Growth and the Role of Taxation-Theory," OECD Economics Department Working Papers 713, OECD Publishing.
    4. Simeon Djankov & Tim Ganser & Caralee McLiesh & Rita Ramalho & Andrei Shleifer, 2010. "The Effect of Corporate Taxes on Investment and Entrepreneurship," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(3), pages 31-64, July.
    5. Lawrence H. Summers, 1981. "Taxation and Corporate Investment: A q-Theory Approach," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 12(1), pages 67-140.
    6. Austan Goolsbee, 1998. "Investment Tax Incentives, Prices, and the Supply of Capital Goods," The Quarterly Journal of Economics, Oxford University Press, vol. 113(1), pages 121-148.
    7. John R. Graham, 2003. "Taxes and Corporate Finance: A Review," Review of Financial Studies, Society for Financial Studies, vol. 16(4), pages 1075-1129.
    Full references (including those not matched with items on IDEAS)

    More about this item


    corporate income taxation; investment; q theory;

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:alu:journl:v:1:y:2009:i:11:p:51. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dan-Constantin Danuletiu). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.