Taxes and the Global Allocation of Capital / David Backus, Espen Henriksen, Kjetil Storesletten.

Format:

Book

Author/Creator:

Backus, David.

Contributor:

National Bureau of Economic Research.

Henriksen, Espen.

Storesletten, Kjetil.

Series:

Working Paper Series (National Bureau of Economic Research) no. w13624.

NBER working paper series no. w13624

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2007.

Summary:

Despite enormous growth in international capital flows, capital-output ratios continue to exhibit substantial heterogeneity across countries. We explore the possibility that taxes, particularly corporate taxes, are a significant source of this heterogeneity. The evidence is mixed. Tax rates computed from tax revenue are inversely correlated with capital-output ratios, as we might expect. However, effective tax rates constructed from official tax rates show little relation to capital -- or to revenue-based tax measures. The stark difference between these two tax measures remains an open issue.

Notes:

Print version record

November 2007.