Globalization and Factor Income Taxation
This paper builds and analyzes a new global macro-historical database of ef- fective tax rates on labor and capital in 155 countries. Effective capital tax rates fell in developed countries between 1965 and 2018, but rose in developing countries since the mid-1990s. Event-studies and instrumental variable regressions show that a significant share of the rise in developing countries can be explained by trade openness, which increases the share of output produced in large corpora- tions, where effective capital taxation is higher. In contrast to a commonly held view, globalization appears in many countries to have supported governments’ ability to tax capital.
Date: 12 March 2024, 15:00 (Tuesday, 9th week, Hilary 2024)
Venue: Saïd Business School, Park End Street OX1 1HP
Speaker: Pierre Bachas (ESSEC Business School)
Organising department: Saïd Business School
Organiser: Kristoffer Berg (Saïd Business School)
Part of: Oxford University Centre for Business Taxation Research Seminars
Booking required?: Required
Booking email:
Audience: Members of the University only
Editor: Alison Meeson