EconPapers    
Economics at your fingertips  
 

Optimal corporation tax: an I.O. approach

Luca Colombo, Paola Labrecciosa and Patrick Walsh ()

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: 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.

Keywords: Effective Corporation Tax Rate; Industry Sunk Costs; Industry Concentration (search for similar items in EconPapers)
JEL-codes: L52 H25 (search for similar items in EconPapers)
Date: 2006-02
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://eprints.lse.ac.uk/6719/ Open access version. (application/pdf)

Related works:
Working Paper: Optimal Corporation Tax: An I.O. Approach (2006) Downloads
Working Paper: Optimal Corporation Tax: An I.O. Approach (2005) 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:ehl:lserod:6719

Access Statistics for this paper

More papers in LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library LSE Library Portugal Street London, WC2A 2HD, U.K.. Contact information at EDIRC.
Bibliographic data for series maintained by LSERO Manager ().

 
Page updated 2019-08-15
Handle: RePEc:ehl:lserod:6719