The effect of corporate taxes on investment: Evidence from the Colombian firms

Arbeitspapier

The paper assesses the role of taxes on investment in Colombian firms. The analysis is carried out at the firm level for the period 2003-2014. During this period, the national government set five different tax reforms, including changes in the statutory tax rates, tax credits and incentives for corporate investment. The effect of corporate taxation on investment is estimated by first determining the impact of taxation on the cost of capital by computing the effective marginal tax rates (EMTRs) at firm level. Then, we estimate the impact of the cost of capital on investment through a panel data regression. Endogeneity is controlled by an instrumental variable approach, simulating post-reform effective marginal tax rates under pre-reform firm characteristics. Results are robust with different control variables, although some significant differences by size and economic sector of the firm are found.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Graduate Institute of International and Development Studies Working Paper ; No. HEIDWP10-2017

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Fiscal Policies and Behavior of Economic Agents: Firm ; Business Taxes and Subsidies including sales and value-added (VAT) ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models ; Firm Behavior: Empirical Analysis
• Thema: Corporate taxes ; Marginal effective tax rate ; Investment ; Cash flows

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Melo-Becerra, Ligia Alba ; Mahecha, Javier Ávila ; Ramos-Forero, Jorge Enrique
• Ereignis: Veröffentlichung
• (wer): Graduate Institute of International and Development Studies
• (wo): Geneva
• (wann): 2017

Weitere Informationen

• Handle: http://hdl.handle.net/10419/162471
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ