Resource title

Exports, foreign direct investment and the costs of corporate taxation

Resource image

image for OpenScout resource :: Exports, foreign direct investment and the costs of corporate taxation

Resource description

This paper develops a model of a monopolistically competitive industry with extensive and intensive business investment and shows how these margins respond to changes in average and marginal corporate tax rates. Intensive investment refers to the size of a firm s capital stock. Extensive investment refers to the firm s production location and reflects the trade-off between exports and foreign direct investment as alternative modes of foreign market access. The paper derives comparative static effects of the corporate tax and shows how the cost of public funds depends on the measures of effective marginal and average tax rates and on the behavioral elasticities of extensive and intensive investment.

Resource author

Christian Keuschnigg

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/26159

Resource license

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