Dynamic effects of anticipated and temporary tax changes in a R&D-Based growth model
2013/12/27
研討會日期 : 2013-12-27
時間 : 14:30
主講人 : Mr. Kizuku Takao
地點 : Conference Room B110
演講者簡介 : Mr. Takao received his master degree in Economics from Osaka University in 2011. He is currently a PhD student at Osaka University. His research fields are Economic Growth, Fiscal Policy and Macroeconomics.
演講摘要 : The tax changes are often announced before implementations and are not permanent but only temporary. R&D firms will optimally adjust their investment decisions to the tax schedules accordingly. This paper analyzes how anticipated and temporary tax changes affect the innovation activities. For the purpose, we consider adjustment costs for the investment process and allow firms to make forward looking investment decisions in a framework of an R&D-based endogenous growth model. Calibrating the model with U.S. data, we obtain the new insights on how to design the corporate taxation policy. The dividend tax cut is not effective policy instrument even if considering the anticipated and/or temporary tax cut. On the other hand, the capital gains tax cut and rise of the R&D tax credit rate are effective policy instrument irrespective of how they are implemented. However, the implementation lags of these tax changes worsens the effectiveness of them.
