TY  - RPRT
        AU  - Link, Sebastian
AU  - Menkhoff, Manuel
AU  - Peichl, Andreas
AU  - Schüle, Paul
        TI  - Downward Revision of Investment Decisions after Corporate Tax Hikes
        PY  - 2023/Apr/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 16056
        UR  - https://www.iza.org/publications/dp16056
        AB  - This paper estimates the causal effect of corporate tax hikes on firm investment based on more than 1,400 local tax changes. By observing planned and realized investment volumes in a representative sample of German manufacturing firms, we can study how tax hikes induce firms to revise their investment decisions. On average, the share of firms that invest less than previously planned increases by three percentage points after a tax hike. This effect is twice as large during recessions.
        KW  - business cycle
KW  - state dependence
KW  - corporate taxation
KW  - investment
        ER  -