Exports, Foreign Direct Investment and the Costs of Corporate Taxation (2007)

Content Provider	CiteSeerX
Author	Keuschnigg, Christian
Abstract	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.
File Format	PDF
Publisher Date	2007-01-01
Access Restriction	Open
Subject Keyword	Public Fund Foreign Direct Investment Alternative Mode Extensive Investment Refers Behavioral Elasticity Marginal Corporate Tax Rate Corporate Taxation Production Location Foreign Market Access Intensive Business Investment Average Tax Rate Intensive Investment Competitive Industry Corporate Tax Intensive Investment Refers Comparative Static Effect Capital Stock
Content Type	Text
Resource Type	Article