Optimal corporation tax: an I.O. approach
Colombo, L., Labrecciosa, P. & Walsh, P. P.
(2006).
Optimal corporation tax: an I.O. approach.
(EI 42).
Suntory and Toyota International Centres for Economics and Related Disciplines.
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.
| Item Type | Working paper |
|---|---|
| Copyright holders | © 2006 the authors |
| Departments | LSE > Research Centres > STICERD |
| Date Deposited | 08 Jul 2008 |
| URI | https://researchonline.lse.ac.uk/id/eprint/6719 |