Artikel

Do corporate taxes reduce investments? Evidence from Italian firm-level panel data

This paper uses an Italian firm-level panel data-set over the period 1994 - 2006 to investigate the nexus between corporate taxation and investment. Studying the effects of corporate taxation on investment at the micro level has two advantages. Firstly, investment is free of aggregation biases and secondly, the firm-level dimension allows asking whether the effects of corporate taxation differ across firms with different characteristics. In the empirical analysis, we employ a Generalized Method of Moments estimator, which permits us to handle not only the dynamic structure of the model and of the predetermined or endogenous explanatory variables, but also firm-specific factors, heteroskedasticity, and autocorrelation of individual observations. We find that corporate taxes distort investment decisions. The results are robust to the inclusion of many controls.

Language
Englisch

Bibliographic citation
Journal: Cogent Economics & Finance ; ISSN: 2332-2039 ; Volume: 3 ; Year: 2015 ; Issue: 1 ; Pages: 1-13 ; Abingdon: Taylor & Francis

Classification
Wirtschaft
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
Capital Budgeting; Fixed Investment and Inventory Studies; Capacity
Business Taxes and Subsidies including sales and value-added (VAT)
Fiscal Policies and Behavior of Economic Agents: Firm
Subject
investment decisions
corporate taxes
effective tax rates
GMM estimator

Event
Geistige Schöpfung
(who)
Federici, Daniela
Parisi, Valentino
Event
Veröffentlichung
(who)
Taylor & Francis
(where)
Abingdon
(when)
2015

DOI
doi:10.1080/23322039.2015.1012435
Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Artikel

Associated

  • Federici, Daniela
  • Parisi, Valentino
  • Taylor & Francis

Time of origin

  • 2015

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