The project aims at investigating the effects of fiscal framework conditions on the investment behaviour of German companies for the period from 1985 to 1985. In this context, data of the annual results of German companies will be analysed with panel econometric methods. In the first project phase, we will describe the theoretical and empirical literature on the subject matters investment and taxation. Furthermore, we will discuss the effects of tax types, scale levels, and assessment bases on corporate investment behaviour. The second project phase will deal with empirical analyses. We will begin with the identification of fiscal framework conditions and a critical evaluation of the connection between historical circumstances and investment activities. It is intended to include the planned tax reform that is currently under discussion into the analysis. In a second step, we will formulate and devise structural investment models. The aim is to complement the existing models with factors impacting taxation and to make assessments on the basis of new panel econometric methods.

Project duration

01.01.2000 - 31.12.2001

Contact

Dr. Fred Ramb

Project members

Prof. Dr. Dietmar Harhoff, Ph.D. (Coordinator)
Dr. Fred Ramb

Cooperation partner

Prof. Steve Bond, University of Oxford, Oxford, UK
Dr. Heinz Hermann, Deutsche Bundesbank, DE
Prof. Dr. Konrad Stahl, Ph.D., Universität Mannheim, Mannheim, DE
Prof. Dr. John van Reenen, The Institute for Fiscal Studies (IFS), London, GB, University College London, London, UK