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

• 成果类型: Article
• 署名作者: Serrato, Juan Carlos Suarez; Zidar, Owen
• 署名单位: Duke University; National Bureau of Economic Research; University of Chicago
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20141702
• 发表日期: 2016
• 页码: 2582-2624
• 关键词: BUSINESS LOCATION DECISIONS; income tax; economic-development; Welfare economics; policies; COMPETITION; INVESTMENT; taxation; choices; GROWTH

摘要

This paper estimates the incidence of state corporate taxes on the welfare of workers, landowners, and firm owners using variation in state corporate tax rates and apportionment rules. We develop a spatial equilibrium model with imperfectly mobile firms and workers. Firm owners may earn profits and be inframarginal in their location choices due to differences in - location-specific productivities. We use the - reduced-form effects of tax changes to identify and estimate incidence as well as the structural parameters governing these impacts. In contrast to standard open economy models, firm owners bear roughly 40 percent of the incidence, while workers and landowners bear 30-35 percent and 25-30 percent, respectively.