全球智库信息集成服务系统(G2TT): DP6619 Liquidity Risk and Correlation Risk: A Clinical Study of the General Motors and Ford Downgrade of May 2005

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP6619
	DP6619 Liquidity Risk and Correlation Risk: A Clinical Study of the General Motors and Ford Downgrade of May 2005
	Stephen Schaefer; Viral Acharya; Yili Zhang
发表日期	2007-12-20
出版年	2007
语种	英语
摘要	Low corporate taxes can help attract new firms. This is the main mechanism underpinning the standard 'race-to-the-bottom' view of tax competition. A recent theoretical literature has qualified this view by formalizing the argument that agglomeration forces can reduce firms' sensitivity to tax differentials across locations. We test this proposition using data on firm startups across Swiss municipalities. We find that, on average, high corporate income taxes do deter new firms, but that this relationship is significantly weaker in the most spatially concentrated sectors. Location choices of firms in sectors with an agglomeration intensity at the twentieth percentile of the sample distribution are estimated to be twice as responsive to a given difference in local corporate tax burdens as firms in sectors with an agglomeration intensity at the eightieth percentile. Hence, our analysis confirms the theoretical prediction: agglomeration economies can neutralize the impact of tax differentials on firms' location choices.
主题	International Trade and Regional Economics ; Public Economics
关键词	Agglomeration economies Count models Firm location Local taxation Switzerland
URL	https://cepr.org/publications/dp6619
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/535450
推荐引用方式 GB/T 7714	Stephen Schaefer,Viral Acharya,Yili Zhang. DP6619 Liquidity Risk and Correlation Risk: A Clinical Study of the General Motors and Ford Downgrade of May 2005. 2007.