Quotation Riedl, Aleksandra, Rocha-Akis, Silvia. Forthcoming. How elastic are national corporate income tax bases in OECD countries? The role of domestic and foreign tax rates. Canadian Journal of Economics


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Abstract

To what extent do reductions in corporate income tax (CIT) rates attract foreign tax bases? What are the revenue implications of a unilateral tax reduction when tax bases are internationally mobile? These questions are explored using annual data from 17 OECD countries spanning the period 1982 to 2005. Controlling for fixed country effects, year effects, country time trends, and subjecting our results to an extensive robustness analysis, we find that (i) a country's aggregate reported corporate profits are negatively and significantly affected by CIT rate reductions in neighboring countries, (ii) a unilateral reduction in the domestic CIT rate results in lower domestic CIT revenues.

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Publication's profile

Affiliation WU
Type of publication Journal article
Journal Canadian Journal of Economics
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, VW-C, WH-B
Language English
Title How elastic are national corporate income tax bases in OECD countries? The role of domestic and foreign tax rates
Year 2012

Associations

People
Riedl, Aleksandra (Former researcher)
Rocha-Akis, Silvia (Former researcher)
Organization
Department of Economics (Kartal) (Details)
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