The capital constraining effects of the norwegian wealth tax
This paper investigates if the Norwegian wealth tax imposes capital constraints on small privately held businesses. A panel of 31,428 Norwegian firms from 2005 to 2009 is used to estimate two models of capital constraints. The models are estimated using the Fixed Effects method. When firms are sorted a priori into two groups based on the wealth tax burden of the primary owner, the non-taxed firms are found to be slightly more constrained than the taxed firms, at a 10% and 5% confidence level depending on the model. Sorting based on the wealth tax is the most effective method of sorting firms into more or less constrained groups, while more traditional methods proved ineffective in this panel. The negative capital constraining effects of the wealth tax are therefore minimal; the tax affects only the private firms least reliant on internal financing
|Date of creation:||Dec 2012|
|Date of revision:|
|Contact details of provider:|| Postal: P.O.Box 8131 Dep, N-0033 Oslo, Norway|
Phone: (+47) 21 09 00 00
Fax: +47 - 62 88 55 95
Web page: http://www.ssb.no/en/
More information through EDIRC
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.:
- Andrea Caggese, 2004.
"Testing financial constraints on firm investment using variable capital,"
Money Macro and Finance (MMF) Research Group Conference 2003
9, Money Macro and Finance Research Group.
- Caggese, Andrea, 2007. "Testing financing constraints on firm investment using variable capital," Journal of Financial Economics, Elsevier, vol. 86(3), pages 683-723, December.
- Andrea Caggese, 2003. "Testing Financing Constraints on Firm Investment Using Variable Capital," Working Papers 65, Barcelona Graduate School of Economics.
- Andrea Caggese, 2003. "Testing financing constraints on firm investment using variable capital," Economics Working Papers 1009, Department of Economics and Business, Universitat Pompeu Fabra, revised Aug 2006.
- Isabelle Joumard, 2003.
"Tax systems in European Union countries,"
OECD Economic Studies,
OECD Publishing, vol. 2002(1), pages 91-151.
- Annette Alstadsæter & Erik Fjaerli, 2009.
"Neutral Taxation of Shareholder Income? Corporate Responses to an Announced Dividend Tax,"
CESifo Working Paper Series
2530, CESifo Group Munich.
- Annette Alstadsæter & Erik Fjærli, 2009. "Neutral taxation of shareholder income? Corporate responses to an announced dividend tax," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 16(4), pages 571-604, August.
When requesting a correction, please mention this item's handle: RePEc:ssb:dispap:724. 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: (L MaasÃ¸)
If references are entirely missing, you can add them using this form.