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Manufacturing investment and taxation in the Nordic countries

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  • Dufwenberg, Martin
  • Koskenkylä, Heikki
  • Södersten, Jan

Abstract

This paper analyzes the accumulation of fixed productive capital in the manufacturing industries in Denmark, Finland, Norway, and Sweden over the years 1965-1990.Particular attention is given to the effect of taxes on this process.The following conclusions appear fairly robust across countries: Cointegrating long-run relationships can be found within the framework of the neo-classical model.The error-correction estimations indicate that investment is relatively sensitive to economic shocks.Taxes seem not to have had significant effects on long-run capital levels nor on the timing of investment behavior.

Suggested Citation

  • Dufwenberg, Martin & Koskenkylä, Heikki & Södersten, Jan, 1994. "Manufacturing investment and taxation in the Nordic countries," Bank of Finland Research Discussion Papers 8/1994, Bank of Finland.
    • Handle: RePEc:zbw:bofrdp:rdp1994_008
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    References listed on IDEAS

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    6. Kanniainen, Vesa & Sodersten, Jan, 1994. "Costs of monitoring and corporate taxation," Journal of Public Economics, Elsevier, vol. 55(2), pages 307-321, October.
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    Cited by:

    1. Takala, Kari, 1995. "The interest rate sensitivity of output in Finland," Bank of Finland Research Discussion Papers 11/1995, Bank of Finland.
    2. Réjane Hugounenq & Jacques Le Cacheux & Thierry Madiès, 1999. "Diversité des fiscalités européennes et risques de concurrence fiscale," Revue de l'OFCE, Programme National Persée, vol. 70(1), pages 63-109.

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