Resource title

Entrepreneurship and incorporation in the EU

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Resource description

In Europe, declining corporate tax rates have come along with rising tax-to-GDP ratios. This paper explores to what extent income shifting from the personal to the corporate tax base can explain these diverging developments. We exploit a panel of European data on firm births and legal form of business to analyze income shifting via increased entrepreneurship and incorporation. The results suggest that lower corporate taxes exert an ambiguous effect on entrepreneurship. The effect on incorporation is significant and large. It implies that the revenue effects of lower corporate tax rates possibly induced by tax competition

Resource author

Ruud A. de Mooij, Gaëtan J.A. Nicodème

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Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/25928

Resource license

Adapt according to the presented license agreement and reference the original author.