MannheimTaxation: Does infrastructure compensate for higher taxes? Experimental evidence from a large-scale manager survey

MannheimTaxation: Does infrastructure compensate for higher taxes? Experimental evidence from a large-scale manager survey

Firm location and investment decisions are crucial for the economic prosperity of local communities. To that effect, local governments have a variety of policy tools at their disposal through which they can influence firms’ decisions in their location choices and investment decisions. Economic theory suggests, among others, that firms optimize in their investment decisions over location-specific tax costs, which reduce net profits, as well as over location-specific productive amenities, which increase productivity and expected profits. This project exploits a randomized information experiment among a representative survey of German firm managers to learn how firms perceive and invest under this optimization trade-off.

Project members

Sebastian Blesse

Sebastian Blesse

Coordinator
Researcher

To the profile
Florian Buhlmann

Florian Buhlmann

Researcher

To the profile
Cooperation partner
Rostam-Afschar, Davud , Mannheim, DE

Contact

Researcher, Dr. Sebastian Blesse
Telefon +49 0621 1235-394