Part 1 - AL-Tax

Chapter 2Jacobs, O. and Spengel, C. (1999). The Effective Average Tax Burden in the European Union and theUSA. ZEW.Jorgenson, D. (1963). Capital Theory and Investment Behavior. American Economic Review,53(2):247–259.King, M. (1974). Taxation and the Cost of Capital. Review of Economic Studies, 41(1):21–35.King, M. and Fullerton, D. (1984). The Taxation of Income from Capital: A Comparative Study ofthe US, UK, Sweden and West Germany. Chicago University Press.Lindhe, T. (2002). Methods of Mitigating Double Taxation. Mimeograph.Martinez-Mongay, C. (2000). ECFIN’s Effective Tax Rates. Properties and Comparisons with otherTax Indicators. ECFIN/593/00.McKenzie, K. (1994). The Implications of Risk and Irreversibility for the Measurement of MarginalEffective Tax Rates on Capital. Canadian Journal of Economics, 27(3):604–619.McKenzie, K., Mintz, J., and Scharf, K. (1997). Measuring Effective Tax Rates in the Presence ofMultiple Inputs: A Production Based Approach. International Tax and Public Finance, 4(3):337–359.Mendoza, E., Razin, A., and Tesar, L. (1994). Effective Tax Rates in Macroeconomics Cross-countryEstimates of Tax Rates on Factor Incomes and Consumption. Journal of Monetary Economics,34(3):297–323.Nicodème, G. (2001). Computing Effective Corporate Tax Rates: Comparisons and Results. ECFINE2/358/01.OECD (1991). Taxing Profits in a Global Economy: Domestic and International Issues.Pindyck, R. (1991). Irreversibility, Uncertainty, and Investment. Journal of Economic Literature,29(3):1110–1148.Quinn, D. (1997). The Correlates of Change in International Financial Regulation. American PoliticalScience Review, 91(3):531–551.Scott, M. (1987). A Note on King and Fullerton’s Formulae to Estimate the Taxation of Income fromCapital. Journal of Public Economics, 34(2):253–264.Sinn, H. (1988). The 1986 Tax Reform and the World Capital Market. European Economic Review,32(2–3):325–333.Slemrod, J. (2004). Are Corporate Tax Rates, or Countries, Converging? Journal of Public Economics,88(6):1169–1186.Sørensen, P. (2004). Measuring the Tax Burden on Capital and Labor. CESifo Seminar Series.Appendix AThere are several types of corporate tax system. The most important are:●Classical or separate entity system. Under this system, the company and theshareholder are considered as two separate legal entities, each having tocalculate its tax liability in an independent way. For example, if a companyhas a taxable income of 100 euros and the corporate rate in the country is35%, the after-tax income is 65 euros. If all this income is distributed to a39