テクニカルレポート

ディスカッション／ワーキング・ペーパー

text

Discussion Papers In Economics And Business. 2014, 14-10, p. 1-40

Dynamic effects of anticipated and temporary tax changes in a R&D-Based growth model

Takao, Kizuku

Graduate School of Economics and Osaka School of International Public Policy (OSIPP), Osaka University

英語

text

2014-02

http://www2.econ.osaka-u.ac.jp/library/global/dp/1410.pdf

Tax changes are often announced before the implementations and are not perma-nent but only temporary. R&D firms will optimally adjust their investment decision to a tax schedule accordingly. This paper analyzes how anticipated and temporary tax changes dynamically affect the innovation actiavities. For the purpose, we con- sider adjustment costs for the investment process and allow firms to make a forward looking investment decision in the framework of an R&D-based endogenous growth model. Calibrating the model with U.S. data, we obtain new insights on how to design the corporate taxation policy. A dividend tax cut is not an effective policy instrument irrespective of how it is implemented. On the other hand, a capital gains tax cut and a rise of the R&D tax credit rate are an effective policy instrument ir- respective of how they are implemented. However, the implementation lags of these tax changes worsen the effectiveness of them.

26930

Dynamic effects of anticipated and temporary tax changes in a R&D-Based growth model

Takao, Kizuku

Graduate School of Economics and Osaka School of International Public Policy (OSIPP), Osaka University

英語

2014-02

Discussion Papers In Economics And Business

14-10

1

40

https://hdl.handle.net/11094/26930

http://www2.econ.osaka-u.ac.jp/library/global/dp/1410.pdf