@techreport{NBERw13624,
 title = "Taxes and the Global Allocation of Capital",
 author = "David Backus and Espen Henriksen and Kjetil Storesletten",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "13624",
 year = "2007",
 month = "November",
 URL = "http://www.nber.org/papers/w13624",
 abstract = {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.},
}