Who Benefits from State Corporate Tax Cuts? A Local Labor Markets Approach with Heterogeneous Firms: Comments

• 成果类型: Article
• 署名作者: Malgouyres, Clement; Mayer, Thierry; Mazet-sonilhac, Clement
• 署名单位: Institut Polytechnique de Paris; ENSAE Paris; Centre National de la Recherche Scientifique (CNRS); Institut d'Etudes Politiques Paris (Sciences Po); Centre for Economic Policy Research - UK; Bocconi University
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20201753
• 发表日期: 2023
• 页码: 2270-2286
• 关键词: economic-development; discrete; gravity

摘要

Suarez Serrato and Zidar (2016) identify state corporate tax inci-dence in a spatial equilibrium model with imperfectly mobile firms. Their identification argument rests on comparative statics omitting a channel implied by their model: the link between common deter-minants of a location's attractiveness and the average idiosyncratic productivity of firms choosing that location. This compositional mar-gin causes the labor demand elasticity to be independent from the product demand elasticity, impeding the identification of incidence from the four estimated reduced-form effects. Assigning consensual values to the unidentified parameters, we find that the incidence share borne by firm owners is closer to 25 percent than 40 percent.