Who Benefits from State Corporate Tax Cuts? A Local Labor Markets Approach with Heterogeneous Firms: Comment
1
PSE -
Paris School of Economics
2 PJSE - Paris Jourdan Sciences Economiques
3 IPP - Institut des politiques publiques
4 ECON - Département d'économie (Sciences Po)
5 CEPII - Centre d'Etudes Prospectives et d'Informations Internationales
6 CEPR - Center for Economic Policy Research
7 Banque de France - Banque de France
2 PJSE - Paris Jourdan Sciences Economiques
3 IPP - Institut des politiques publiques
4 ECON - Département d'économie (Sciences Po)
5 CEPII - Centre d'Etudes Prospectives et d'Informations Internationales
6 CEPR - Center for Economic Policy Research
7 Banque de France - Banque de France
Clément Malgouyres
- Fonction : Auteur
- PersonId : 1331600
- IdHAL : clement-malgouyres
- ORCID : 0000-0002-2711-7669
- IdRef : 272233927
Thierry Mayer
- Fonction : Auteur
- PersonId : 1017387
- IdHAL : thierry-mayer
- ORCID : 0000-0003-2098-3887
- IdRef : 035164409
Clément Mazet-Sonilhac
- Fonction : Auteur
- PersonId : 1173996
- IdRef : 258335653
Résumé
Suárez Serrato and Zidar (2016) identify state corporate tax incidence in a spatial equilibrium model with imperfectly mobile firms. Their identification argument rests on comparative-statics omitting a channel implied by their model: the link between common determinants of a location’s attractiveness and the average idiosyncratic productivity of firms choosing that location. This compositional margin causes the labor demand elasticity to be independent from the product demand elasticity, impeding the identification of incidence from the four estimated reduced-form effects. Assigning consensual values to the unidentified parameters, we find that the incidence share born by firm-owners is closer to 25% than 40%.
Domaines
Economies et financesFormat du dépôt | Fichier |
---|---|
Type de dépôt | Pré-publication, Document de travail |
Titre |
en
Who Benefits from State Corporate Tax Cuts? A Local Labor Markets Approach with Heterogeneous Firms: Comment
|
Résumé |
en
Suárez Serrato and Zidar (2016) identify state corporate tax incidence in a spatial equilibrium model with imperfectly mobile firms. Their identification argument rests on comparative-statics omitting a channel implied by their model: the link between common determinants of a location’s attractiveness and the average idiosyncratic productivity of firms choosing that location. This compositional margin causes the labor demand elasticity to be independent from the product demand elasticity, impeding the identification of incidence from the four estimated reduced-form effects. Assigning consensual values to the unidentified parameters, we find that the incidence share born by firm-owners is closer to 25% than 40%.
|
Auteur(s) |
Clément Malgouyres
1, 2, 3
, Thierry Mayer
4, 5, 6
, Clément Mazet-Sonilhac
7, 4
1
PSE -
Paris School of Economics
( 301309 )
- 48 boulevard Jourdan 75014 Paris
- France
2
PJSE -
Paris Jourdan Sciences Economiques
( 578027 )
- 48 boulevard Jourdan 75014 Paris
- France
3
IPP -
Institut des politiques publiques
( 266522 )
- 48 boulevard Jourdan 75014 Paris
- France
4
ECON -
Département d'économie (Sciences Po)
( 226874 )
- 28 rue des Saints-Pères - 75007 Paris
- France
5
CEPII -
Centre d'Etudes Prospectives et d'Informations Internationales
( 39083 )
- 9 rue Georges Pitard - 75740 Paris Cedex 15
- France
6
CEPR -
Center for Economic Policy Research
( 143559 )
- Royaume-Uni
7
Banque de France -
Banque de France
( 183299 )
- France
|
Langue du document |
Anglais
|
Date de production/écriture |
2021-07
|
Public visé |
Scientifique
|
Licence |
Paternité - Pas d'utilisation commerciale - Pas de modification
|
Domaine(s) |
|
Mots-clés (JEL) |
|
Référence interne |
|
Projet(s) ANR |
|
Mots-clés |
en
Incidence, Corporate income tax, Discrete/continuous choice
|
Origine :
Fichiers produits par l'(les) auteur(s)
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