{"id":52581,"date":"2023-12-01T17:53:35","date_gmt":"2023-12-01T16:53:35","guid":{"rendered":"https:\/\/www.wifo.ac.at\/publication\/on-the-measurement-of-investment-types-heterogeneity-in-corporate-tax-elasticities\/"},"modified":"2025-10-22T22:16:20","modified_gmt":"2025-10-22T20:16:20","slug":"on-the-measurement-of-investment-types-heterogeneity-in-corporate-tax-elasticities","status":"publish","type":"publication","link":"https:\/\/www.wifo.ac.at\/en\/publication\/52581\/","title":{"rendered":"On the measurement of investment types: Heterogeneity in corporate tax elasticities"},"content":{"rendered":"","protected":false},"featured_media":0,"template":"","class_list":["post-52581","publication","type-publication","status-publish","hentry"],"acf":{"subtitle":"","text":"This paper contributes to debates about the appropriate characterisation of heterogeneous investment types and to what extent different investment motives affect the responsiveness to corporate taxation. In particular, we employ and refine a methodology to better evaluate the tax elasticity of investment types. Using a combination of both firm\u2010specific and sector\u2010specific information from input-output tables, we discuss how to classify investment as non\u2010related, horizontal, vertical and complex types. First, we point out to what extent the resulting classification depends on assumptions made by the researcher. Second, we employ an ample set of classifications and find that non\u2010related investment reacts stronger to corporate taxation, whereas horizontal investment is less responsive, though, significant negative tax semi\u2010elasticities turn out for the subset of manufacturing industries. To address inherent characteristics of vertical and complex investment, we extend the methodology and find that, by and large, stronger business motives reduce the tax responsiveness of investment to a larger extent. Given the current debates about substantial corporate tax reforms, it is all the more important to recognise that corporate tax effects can vary fundamentally between countries, driven by country\u2010specific differences in their composition of industries and investment types.","onlinedate":"2019-05-01 02:00:00","lang":"English","publication_series":"","publication_date":"20190501","publication_date_year":"","publication_date_full":false,"publication_num_pages":"","keywords":"[]","jelcodes":"[]","related_publications":"[]","pdf":null,"zip":null,"link":"https:\/\/onlinelibrary.wiley.com\/doi\/full\/10.1111\/twec.12672","monthly_report":false,"monthly_report_main":false,"monthly_report_volume":"42","monthly_report_pages":"478-508","monthly_report_pages_sort":"478","issue":"2","journal":"The World Economy","publisher":"","invisible":false,"external":true,"embargo_date":null,"types":[83083],"research_groups":[3500],"collaboration":"","persons":[11997,3859],"persons_data":"[{\"personId\":11997,\"personName\":\"Hendrik Jungmann\",\"organisationNames\":[]},{\"personId\":3859,\"personName\":\"Simon Loretz\",\"organisationNames\":[]}]","clients":[],"subclients":[],"partners":[],"topics":[40979],"host_publication_title":"","host_publication_subtitle":"","place_of_publication":"","host_publication_editors":"[]","type_description":"","output_media":"","chapter":"","article_number":"","scientific_assistance":"[]","scientific_review":"[]","version":"","release_date":null,"expiration_date":null,"surveyor":"","research_assistance":"","edv":"","additional_info_de":"","additional_info_en":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.3 (Yoast SEO v27.3) - 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