Taxes and the global allocation of capital
By: David Backus, Espen Henriksen, Kjetil Storesletten
Contributors: Henriksen, Espen; Storesletten, Kjetil; National Bureau of Economic Research
Series: NBER working paper series -- working paper 13624; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 13624.
Publisher: National Bureau of Economic Research
Published: 2007
Place of publication: Cambridge, MA
Language: eng
Format: [electronic resource] /
Description: "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"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 12/7/2007.

Includes bibliographical references.

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