On the Italian ACE and its impact on enterprise performance: a PLS-path modeling analysis

Simona Balzano, Filippo Oropallo () and Valentino Parisi
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Simona Balzano: University of Cassino, Department of Economics

International Journal of Microsimulation, 2011, vol. 4, issue 2, 14-26

Abstract: In 1998 Italy introduced a restricted version of an Allowance for Corporate Equity, called Dual Income Tax. Using data integrating Italys Institute for Statistics enterprise survey data and company accounts, we explore the effects of the Dual Income Tax on enterprise performance in 1998-2001. Firms benefiting from this allowance are simulated through the DIECOFIS corporate tax microsimulation model. The method to estimate enterprise performance is based on a structural equation model which allows us to compute a composite indicator given specific factors observed from enterprise activity. We find a positive impact of the Dual Income Tax on enterprise performance in that companies benefiting from this allowance outperformed non-eligible ones.

Keywords: Allowance for corporate equity; Microsimulation; Enterprise performance; PLS path-modeling; Structural equation model (search for similar items in EconPapers)
JEL-codes: C13 H25 H32 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ijm:journl:v:4:y:2011:i:2:p:14-26

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