EconPapers    
Economics at your fingertips  
 

Who benefits from state corporate tax cuts? A local labour markets approach with heterogeneous firms

Juan Carlos Suárez Serrato () and Owen Zidar

No 1502, Working Papers from Oxford University Centre for Business Taxation

Abstract: This paper estimates the incidence of state corporate taxes on the welfare of workers, landowners, and firm owners using variation in state corporate tax rates and apportionment rules. We develop a spatial equilibrium model with imperfectly mobile firms and workers. Firm owners may earn profits and be inframarginal in their location choices due to differences in location-specific productivities. We use the reduced-form effects of tax changes to identify and estimate incidence as well as the structural parameters governing these impacts. In contrast to standard open economy models, firm owners bear roughly 40% of the incidence, while workers and landowners bear 30-35% and 25-30%, respectively.

JEL-codes: H22 H25 H32 H71 R30 R23 R58 J32 F22 F23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-geo, nep-lma, nep-pbe and nep-ure
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.sbs.ox.ac.uk/sites/default/files/Busine ... Series_15/WP1502.pdf (application/pdf)

Related works:
Journal Article: Who Benefits from State Corporate Tax Cuts? A Local Labor Markets Approach with Heterogeneous Firms (2016) Downloads
Working Paper: Who Benefits from State Corporate Tax Cuts? A Local Labor Markets Approach with Heterogeneous Firms (2014) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:btx:wpaper:1502

Access Statistics for this paper

More papers in Working Papers from Oxford University Centre for Business Taxation Contact information at EDIRC.
Series data maintained by Dongxian Guo (). This e-mail address is bad, please contact .

 
Page updated 2017-12-10
Handle: RePEc:btx:wpaper:1502