Title: Taxes and the global allocation of capital
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.