Corporate taxation and capital accumulation

Bond, Stephen and Xing, Jing (2010) Corporate taxation and capital accumulation. Centre for Business Taxation WP 10/15.

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We present new empirical evidence that aggregate capital accumulation is strongly influenced by the user cost of capital and, in particular, by corporate tax incentives summarised in the tax-adjusted user cost. We use sectoral panel data for the USA, Japan, Australia and ten EU countries over the period 1982-2007. Our panel combines data on capital stocks, value-added and relative prices from the EU KLEMS database with measures of effective corporate tax rates from the Oxford University Centre for Business Taxation. Given the tax-adjusted user cost, we find little additional information in statutory corporate tax rates or effective average tax rates.

Item Type: Other Working Paper
Keywords: Capital accumulation, user cost of capital, corporate taxation
Centre: Oxford University Centre for Business Taxation > CBT Working Papers
Date Deposited: 01 Feb 2011 11:09
Last Modified: 15 Oct 2015 02:18

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