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Measuring the Impact of Financial Taxation on Capital

Author

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  • Correa, Juan
  • Lorca, Miguel
  • Parro, Francisco

Abstract

Using panel data from Chilean manufacturing plants, we present an empirical model to measure the impact of a financial transaction tax on capital stock. Our results show a statistically significant negative effect of the tax on the stock of capital. We also find that the impact on plants is heterogeneous, depending on the intensity of different types of capital held by plants. Indeed, plants with a higher percentage of infrastructure assets, such as land and buildings, are affected relatively less by the tax.

Suggested Citation

  • Correa, Juan & Lorca, Miguel & Parro, Francisco, 2015. "Measuring the Impact of Financial Taxation on Capital," MPRA Paper 64378, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:64378
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    References listed on IDEAS

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    Cited by:

    1. Yok-Yong Lee & M. H. Yahya & A. M. Bany-Ariffin & S. Aslam, 2018. "Leverage Effect and Switching of Market Efficiency Post Goods and Services Tax (GST) Imposition," International Business Research, Canadian Center of Science and Education, vol. 11(3), pages 162-178, March.

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    More about this item

    Keywords

    financial transaction tax; stock of capital; manufacturing industry;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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