Publication:
Taxation and the life cycle of firms

Simple item page
dc.affiliation.dptoUC3M. Departamento de Economíaes
dc.contributor.authorErosa, Andrés
dc.contributor.authorGonzález López, Beatriz
dc.contributor.funderMinisterio de Economía y Competitividad (España)es
dc.contributor.funderComunidad de Madrides
dc.date.accessioned2022-06-28T12:50:12Z
dc.date.available2022-06-28T12:50:12Z
dc.date.issued2019-08-01
dc.description.abstractThe Hopenhayn and Rogerson (1993) framework is extended to understand how different forms of taxing capital income affect firms' investment and financial policies over their life cycle. Relative to dividends and capital gains taxation, corporate income taxation slows down firm growth over the life cycle by reducing after-tax profits available for reinvesting. It also diminishes entry by negatively affecting the value of entrants relative to that of incumbent firms. After a tax reform eliminating the corporate income tax in a revenue neutral way, output and capital increase by 12% and 32%. The large response of firm entry is crucial.en
dc.description.sponsorshipErosa acknowledges financial support from the Ministerio de Economia y Competitividad of Spain (grants ECO2015-68615-P and MDM 2014-0431) and Comunidad de Madrid, MadEco-CM (S2015/HUM-3444). Erosa also acknowledges financial support from the Banco de España. González gratefully acknowledges support from Fundación La Caixa (ID 100010434), grant number LCF/BQ/ES15/10360005en
dc.identifier.bibliographicCitationErosa, A., & González, B. (2019). Taxation and the life cycle of firms. Journal of Monetary Economics, 105, pp. 114-130.en
dc.identifier.doihttps://doi.org/10.1016/j.jmoneco.2019.04.006
dc.identifier.issn0304-3932
dc.identifier.publicationfirstpage114es
dc.identifier.publicationlastpage130es
dc.identifier.publicationtitleJOURNAL OF MONETARY ECONOMICSen
dc.identifier.publicationvolume105es
dc.identifier.urihttps://hdl.handle.net/10016/35313
dc.identifier.uxxiAR/0000024754
dc.language.isoengen
dc.publisherElsevieres
dc.relation.projectIDComunidad de Madrid. S2015/HUM-3444es
dc.relation.projectIDGobierno de España. ECO2015-68615-Pes
dc.relation.projectIDGobierno de España. MDM 2014-0431es
dc.rights© 2019 Elsevier B.V. All rights reserveden
dc.rightsAtribución-NoComercial-SinDerivadas 3.0 España*
dc.rights.accessRightsopen accessen
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/es/*
dc.subject.ecienciaEconomíaes
dc.subject.jelD21
dc.subject.jelE22
dc.subject.jelE62
dc.subject.jelG32
dc.subject.jelH32
dc.subject.otherCapital income taxationen
dc.subject.otherFirm dynamicsen
dc.subject.otherInvestmenten
dc.subject.otherMacroeconomicsen
dc.titleTaxation and the life cycle of firmsen
dc.typeresearch article*
dc.type.hasVersionAM*
dspace.entity.typePublication
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
taxation_JME_2019_ps.pdf
Size:
691.06 KB
Format:
Adobe Portable Document Format
Download
Collections
DE - Artículos de Revistas