Projects per year
Abstract
The gradually changing nature of production and the move away from tangible investment towards intangible investment over the past century suggest that the effects of the tax structure on investment need to be reassessed. To address this issue, we establish an endogenous growth model in which investment in tangible assets, R&D and education are influenced by different types of taxes. We test the long-run implications of the model using annual data for 21 OECD countries over the period 1890–2015. We find that corporate income taxes reduce investment in tangible assets and R&D. However, while personal income taxes reduce investment in tertiary education, they enhance investment in R&D. Thus a revenue-neutral switch from corporate to personal income taxes is growth enhancing.
Original language | English |
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Pages (from-to) | 584-611 |
Number of pages | 28 |
Journal | Economica |
Volume | 90 |
Issue number | 358 |
DOIs | |
Publication status | Published - Apr 2023 |
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Inequality, Trade, and Technology
Robertson, P. (Investigator 01) & Madsen, J. (Investigator 02)
ARC Australian Research Council
9/02/22 → 8/02/27
Project: Research
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Inequality and Economic Growth: Implications for Australia and the OECD
Madsen, J. (Investigator 01)
ARC Australian Research Council
1/01/19 → 31/12/21
Project: Research