Colombo, Luca, Labrecciosa, Paola and Walsh, Patrick Paul (2006) Optimal corporation tax: an I.O. approach. EI, 42. Suntory and Toyota International Centres for Economics and Related Disciplines, London School of Economics and Political Science, London, UK.
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Theory predicts that optimal effective corporation tax rates will be negatively related to industry specific sunk costs, and hence industry concentration. Governments should tax industries with monopolistic power softly. Evidence suggests that this Schumpeterian (1942) principle of corporate taxation was used widely across industries in France, Italy and the UK in the 1990s.
|Item Type:||Monograph (Discussion Paper)|
|Additional Information:||© 2006 the authors|
|Uncontrolled Keywords:||Effective Corporation Tax Rate, Industry Sunk Costs, Industry Concentration|
|Library of Congress subject classification:||H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HJ Public Finance
|Journal of Economic Literature Classification System:||L - Industrial Organization > L5 - Regulation and Industrial Policy > L52 - Industrial Policy; Sectoral Planning Methods
H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H25 - Business Taxes and Subsidies
|Sets:||Collections > Economists Online
Research centres and groups > Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD)
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