Arbeitspapier
Economic integration and the optimal corporate tax structure with heterogeneous firms
We study the optimal combination of corporate tax rate and tax base in a model of a small open economy with heterogeneous firms. We show that it is optimal for the small country's government to effectively subsidize capital inputs by granting a tax allowance in excess of the true costs of capital. Economic integration reduces the optimal capital subsidy and drives low-productivity firms from the small country's home market, replacing them with high-productivity exporters from abroad. This endogenous policy response creates a selection effect that increases the average productivity of home firms when trade barriers fall, in addition to the well-known direct effects.
- Sprache
-
Englisch
- Erschienen in
-
Series: CESifo Working Paper ; No. 3566
- Klassifikation
-
Wirtschaft
Business Taxes and Subsidies including sales and value-added (VAT)
International Fiscal Issues; International Public Goods
Economic Integration
- Thema
-
corporate tax reform
trade liberalization
firm heterogeneity
Unternehmensbesteuerung
Steuerbemessung
Optimale Besteuerung
Kleines-offenes-Land
Außenhandelsliberalisierung
Wirtschaftsintegration
Produktivität
Theorie
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Bauer, Christian
Davies, Ronald B.
Haufler, Andreas
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Economic Studies and ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2011
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:41 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
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Objekttyp
- Arbeitspapier
Beteiligte
- Bauer, Christian
- Davies, Ronald B.
- Haufler, Andreas
- Center for Economic Studies and ifo Institute (CESifo)
Entstanden
- 2011
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