Resource title

Entrepreneurship and incorporation in the EU

Resource image

image for OpenScout resource :: Entrepreneurship and incorporation in the EU

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

Resource publisher

Resource publish date

Resource language


Resource content type


Resource resource URL

Resource license

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