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The Measurement of Effective Tax Rates: Common Themes in Business Management and Economics

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  • Lammersen, Lothar

Abstract

Economic agents who face the diversity of tax systems demand condensed but sophisticated information on effective tax burdens. We analyse common features and differences between important forward-looking concepts of measuring effective tax rates in business management and economics and develop some useful properties for analysing and communicating them. We explore how the instruments can be employed to provide information on the impact of taxation on decision-making, competition, and distribution. The large variety of instru-ments proves very useful. However, it turns out to be necessary to reveal the measurement?s scope and to carefully choose the adequate approach and measure.

Suggested Citation

  • Lammersen, Lothar, 2002. "The Measurement of Effective Tax Rates: Common Themes in Business Management and Economics," ZEW Discussion Papers 02-46, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:672
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    Cited by:

    1. Martin Finkenzeller & Christoph Spengel, 2004. "Measuring the Effective Levels of Company Taxation in the New Member States: A Quantitative Analysis," Taxation Papers 7, Directorate General Taxation and Customs Union, European Commission, revised Dec 2004.
    2. Tao Zeng, 2010. "Income tax liability for large corporations in China: 1998‐2007," Asian Review of Accounting, Emerald Group Publishing Limited, vol. 18(3), pages 180-196, September.
    3. Haverals, Jacqueline, 2005. "IAS/IFRS in Belgium: Quantitative Analysis of the Impact on the Tax Burden of Companies," ZEW Discussion Papers 05-38, ZEW - Leibniz Centre for European Economic Research.
    4. Knirsch, Deborah, 2002. "Neutrality-based effective tax rates," Tübinger Diskussionsbeiträge 249, University of Tübingen, School of Business and Economics.
    5. Paquin, Jean-Paul & Racicot, François-Éric & Koplyay, Tamas & Tessier, David, 2024. "Assessing the impact of taxation on the effective tax rate and operational risk of capital investment projects under optimal capital structures," International Review of Economics & Finance, Elsevier, vol. 96(PA).
    6. Desiderio Romero-Jordán & Ismael Sanz-Labrador & José Félix Sanz-Sanz, 2020. "Is the corporation tax a barrier to productivity growth?," Small Business Economics, Springer, vol. 55(1), pages 23-38, June.

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    Keywords

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    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm

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