Do Corporate Taxes Hinder Innovation? | E-Axes

Not a member yet? Click here.
Forgot your Password?
Archives - Categories
On Inequality
On the Eurozone Debt Crisis
On Monetary Policy and Central Banking
On Global Economic Growth
On the Greek Debt Crisis
On the Banking and Financial Sectors
On Brexit
On China
On India
On Global Inflation
On Currencies
On the US Debt
On the "Economics" of the Arab Spring
Working Papers
Books suggested by members

Do Corporate Taxes Hinder Innovation?

date Date: June 22, 2014
date Author(s): Abhiroop Mukherjee, Manpreet Singh, Alminas Zaldokas
date Affiliation: Hong Kong University of Science & Technology

We examine staggered changes in state-level corporate tax rates to show that an increase in taxes reduces future innovation. To sharpen our analysis, we exploit a novel dataset containing information on the geography of firms’ operations, and document that the effect is stronger among firms that have a higher proportion of operations in states that pass tax changes, and those that are located in states with laws that make shifting profits out of the state for tax reasons more difficult. Finally, we address concerns regarding endogeneity of tax changes by using instruments based on state legislative rules concerning tax increases.


© 2011–2017 e-axes. All rights reserved. | Credits | Contact Us | Privacy Statement | Tue 23 Jan, 2018 07:45:55 AM
e-axes is proudly powered by Norder - Creative Solutions