Could higher taxes increase the long-run demand for capital? - Theory and evidence for Chile

• 成果类型: Article
• 署名作者: Bustos, A; Engel, EMRA; Galetovic, A
• 署名单位: Yale University; National Bureau of Economic Research; Universidad de Chile
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2003.06.002
• 发表日期: 2004
• 页码: 675-697
• 关键词: adjustment costs; corporate veil; demand for capital; depreciation allowances; user cost of capital

摘要

On theoretical grounds alone, there is no a priori reason why higher taxes should reduce the desired capital stock, since a tax increase reduces marginal returns but also increases depreciation and interest payment allowances. Using a panel of Chilean corporations, this paper estimates a long-run demand for capital valid for a general adjustment-cost structure. Changes in the corporate tax rate are found to have no effect on the long-run demand for capital. Furthermore, when making investment decisions, firms ignore the marginal rates paid by their stockholders, suggesting the presence of a corporate veil. (C) 2003 Elsevier B.V. All rights reserved.