Corporate Tax Rates, Allocative Efficiency, and Aggregate Productivity

Abstract: This paper quantifies the impact of effective corporate tax rates on aggregate total factor productivity (TFP). Using Chilean manufacturing data, we document a large dispersion in the effective tax rate faced by firms and a mass of firms facing a 0 percent tax rate. We integrate these findings into a standard monopolistic competition model, where firms are subject to corporate taxation and also face output and capital wedges, which represent all other distortions present in the economy. We find that eliminating corporate tax rates increases TFP between 4 and 11 percent. We consider counterfactual policies in which firms face a uniform flat tax rate and find a monotonically decreasing relationship between the level of the tax rate and TFP.

Angaben zum Objekt

• Standort: Deutsche Nationalbibliothek Frankfurt am Main
• Umfang: Online-Ressource
• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Corporate Tax Rates, Allocative Efficiency, and Aggregate Productivity ; volume:24 ; number:2 ; year:2024 ; pages:633-675 ; extent:43 ; The B.E. journal of macroeconomics ; 24, Heft 2 (2024), 633-675 (gesamt 43)

Beteiligte, Orts- und Zeitangaben

• Urheber: Dinerstein, Marcos ; Patiño Peña, Fausto

Weitere Informationen

• DOI: 10.1515/bejm-2023-0138
• URN: urn:nbn:de:101:1-2412241509276.526145363779
• Rechteinformation: Open Access; Der Zugriff auf das Objekt ist unbeschränkt möglich.
• Letzte Aktualisierung: 15.08.2025, 07:22 MESZ