NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Tax Reforms and Investment: A Cross-Country Comparison

Jason G. Cummins, Kevin A. Hassett, R. Glenn Hubbard

NBER Working Paper No. 5232 (Also Reprint No. r2102)
Issued in August 1995
NBER Program(s):   CF   PE

We use firm-level panel data to explore the extent to which fixed investment responds to tax reforms in 14 OECD countries. Previous studies have often found that investment does not respond to changes in the marginal cost of investment. We identify some of the factors responsible for this finding and employ an estimation procedure that sidesteps the most important of them. In so doing, we find evidence of statistically and economically significant investment responses to tax changes in 12 of the 14 countries.

download in pdf format
   (580 K)

email paper

This paper is available as PDF (580 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w5232

Published: Journal of Public Economics, vol. 62, no. 1-2, pp. 237-273, (1996). citation courtesy of

Users who downloaded this paper also downloaded these:
Cummins, Hassett, and Hubbard Have Tax Reforms Affected Investment?
Auerbach and Hassett w3619 Tax Policy and Business Fixed Investment in the United States
Auerbach, Hassett, and Sodersten w5189 Taxation and Corporate Investment: The Impact of the 1991 Swedish Tax Reform
Hassett and Hubbard w5683 Tax Policy and Investment
Abel and Eberly w4296 A Unified Model of Investment Under Uncertainty
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us