Journal article icon

Journal article

Is the Corporation Tax an Effective Automatic Stabilizer?

Abstract:

We investigate the extent to which the corporation tax can act as an automatic stabilizer by smoothing the effects on investment of shocks to income. The main stabilizing effect would be through a reduced tax liability affecting the internal funds available for investment by credit-constrained companies. We present evidence for the United Kingdom that most credit-constrained firms have also been likely to be in a tax loss-making position, implying that the tax does not smooth investment, and ...

Expand abstract

Actions


Access Document


Files:

Authors


Michael P. Devereux More by this author
Clemens Fuest More by this author
Journal:
National Tax Journal
Volume:
62
Issue:
3
Publication date:
2009
URN:
uuid:58794ca1-50fc-4546-9340-d443d0499eaa
Local pid:
oai:economics.ouls.ox.ac.uk:14678
Language:
English

Terms of use


Metrics



If you are the owner of this record, you can report an update to it here: Report update to this record

TO TOP