Publication:
Corporate Tax Rates, Allocative Efficiency, and Aggregate Productivity

Simple item page
dc.contributor.authorDinerstein, Marcos
dc.contributor.authorPatiño Peña, Fausto
dc.date.accessioned2023-04-11T13:38:37Z
dc.date.available2023-04-11T13:38:37Z
dc.date.issued2023-04-11
dc.description.abstractThis paper quantifies the impact of effective corporate tax rates on aggregate total factor productivity. Using Chilean manufacturing data, the paper documents a large dispersion in the effective tax rate faced by firms and a mass of firms facing a 0 percent tax rate. These empirical patterns are incorporated into a standard monopolistic competition model with corporate tax rates. The paper’s quantitative findings show that the TFP gains between the economy implied by the Chilean tax code of 1998–2007 and a hypothetical economy without effective corporate tax rate inefficiencies are between 4 and 11 percent. The paper considers counterfactual policies in which all firms face the same tax rate and finds a monotonically decreasing relationship between the level of the tax rate and total factor productivity.en
dc.identifierhttp://documents.worldbank.org/curated/en/099243304062314372/IDU0f2d7762a0a06604da00b05d0c98a2b753b11
dc.identifier.doi10.1596/1813-9450-10394
dc.identifier.urihttps://openknowledge.worldbank.org/handle/10986/39660
dc.languageEnglish
dc.language.isoen
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Papers; 10394
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectCORPORATE TAX RATE
dc.subjectCORPORATE TAX IMPACT ON PRODUCTIVITY
dc.subjectMONOPOLISTIC COMPETITION
dc.subjectPRODUCTIVITY
dc.subjectTAX CODE
dc.subjectMANUFACTURING SECTOR TAX DATA
dc.titleCorporate Tax Rates, Allocative Efficiency, and Aggregate Productivityen
dc.typeWorking Paper
dspace.entity.typePublication
okr.crossref.titleCorporate Tax Rates, Allocative Efficiency, and Aggregate Productivity
okr.date.disclosure2023-04-06
okr.date.lastmodified2023-04-06T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099243304062314372/IDU0f2d7762a0a06604da00b05d0c98a2b753b11
okr.guid099243304062314372
okr.identifier.docmidIDU-f2d7762a-a066-4da0-b05d-c98a2b753b11
okr.identifier.doi10.1596/1813-9450-10394
okr.identifier.externaldocumentum34036741
okr.identifier.internaldocumentum34036741
okr.identifier.reportWPS10394
okr.import.id383
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099243304062314372/pdf/IDU0f2d7762a0a06604da00b05d0c98a2b753b11.pdfen
okr.region.countryChile
okr.topicMacroeconomics and Economic Growth::Taxation & Subsidies
okr.topicLaw and Development::Tax Law
okr.topicInternational Economics and Trade::Trade Technology and Productivity
okr.topicPrivate Sector Development::Business in Development
okr.unitEFI-LCR-FCI-Finance (ELCFN)
Files
Original bundle
Now showing 1 - 2 of 2
Thumbnail Image
Name:
IDU0f2d7762a0a06604da00b05d0c98a2b753b11.pdf
Size:
1.18 MB
Format:
Adobe Portable Document Format
Download
No Thumbnail Available
Name:
IDU0f2d7762a0a06604da00b05d0c98a2b753b11.txt
Size:
88.21 KB
Format:
Plain Text
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description:
Download
Collections
Policy Research Working Papers