Do Corporate Tax Cuts Boost Economic Growth?
By: Heimberger, Philipp.
Contributor(s): Gechert, Sebastian.
Material type: BookSeries: wiiw Working Papers: 201Publisher: Wien : Wiener Institut für Internationale Wirtschaftsvergleiche (wiiw), 2021Description: 44 S., 6 Tables and 4 Figures, 30cm.Subject(s): Corporate income taxes | economic growth | meta-analysisCountries covered: Asia | CEE | CIS | East Asia | European Union | New EU Member States | OECD | SEE | Wider Europewiiw Research Areas: Macroeconomic Analysis and PolicyClassification: E60 | H25 | O40 Online resources: Click here to access online Summary: The empirical literature on the impact of corporate taxes on economic growth reaches ambiguous conclusions: corporate tax cuts increase, reduce, or do not significantly affect growth. We apply meta-regression methods to a novel dataset with 441 estimates from 42 primary studies. There is evidence for publication selectivity in favour of reporting growth-enhancing effects of corporate tax cuts. Correcting for this bias, we cannot reject the hypothesis of a zero effect of corporate taxes on growth. Several factors influence reported estimates, including researcher choices concerning the measurement of growth and corporate taxes, and controlling for other budgetary components.Item type | Current library | Call number | Status | Date due | Barcode | |
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Paper | WIIW Library | 5.700/201 (Browse shelf(Opens below)) | Available | 1000010005821 |
The empirical literature on the impact of corporate taxes on economic growth reaches ambiguous conclusions: corporate tax cuts increase, reduce, or do not significantly affect growth. We apply meta-regression methods to a novel dataset with 441 estimates from 42 primary studies. There is evidence for publication selectivity in favour of reporting growth-enhancing effects of corporate tax cuts. Correcting for this bias, we cannot reject the hypothesis of a zero effect of corporate taxes on growth. Several factors influence reported estimates, including researcher choices concerning the measurement of growth and corporate taxes, and controlling for other budgetary components.