• Medientyp: Bericht; E-Book
  • Titel: Effective tax rates, endogenous mark-ups and heterogeneous firms
  • Beteiligte: Irlacher, Michael [Verfasser:in]; Unger, Florian [Verfasser:in]
  • Erschienen: München: Ludwig-Maximilians-Universität München, Volkswirtschaftliche Fakultät, 2018
  • Sprache: Englisch
  • DOI: https://doi.org/10.5282/ubm/epub.49717
  • Schlagwörter: F12 ; Heterogeneous firms ; Effective tax rate ; Corporate taxation ; L11 ; H25 ; Linear demand ; Endogenous mark-ups
  • Entstehung:
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  • Beschreibung: We provide a new explanation why effective tax rates are smaller for larger firms even in the absence of common channels like profit shifting and lobbying. This result emerges in a heterogeneous firms model with endogenous mark-ups. Our framework features imperfect tax pass-through into prices and partial deductibility of production costs. Corporate taxes reduce mark-ups and hence pre-tax profits, especially for high cost firms. As production costs are only partially deductible, high cost producers are affected most by taxes. We further show that shocks which affect mark-ups through competition, like globalization, reinforce the heterogeneity in effective tax rates across firms.
  • Zugangsstatus: Freier Zugang