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Replication data for: Tax Policy and Heterogeneous Investment Behavior

Version
V0
Resource Type
Dataset
Creator
  • Zwick, Eric
  • Mahon, James
Publication Date
2017-01-01
Description
  • Abstract

    We estimate the effect of temporary tax incentives on equipment investment using shifts in accelerated depreciation. Analyzing data for over 120,000 firms, we present three findings. First, bonus depreciation raised investment in eligible capital relative to ineligible capital by 10.4 percent between 2001 and 2004 and 16.9 percent between 2008 and 2010. Second, small firms respond 95 percent more than big firms. Third, firms respond strongly when the policy generates immediate cash flows, but not when cash flows only come in the future. This heterogeneity materially affects investment-weighted estimates and supports models in which financial frictions or fixed costs amplify investment responses.
Availability
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Relations
  • Is supplement to
    DOI: 10.1257/aer.20140855 (Text)
Publications
  • Zwick, Eric, and James Mahon. “Tax Policy and Heterogeneous Investment Behavior.” American Economic Review 107, no. 1 (January 2017): 217–48. https://doi.org/10.1257/aer.20140855.
    • ID: 10.1257/aer.20140855 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-12-06

Zwick, Eric; Mahon, James (2017): Replication data for: Tax Policy and Heterogeneous Investment Behavior. Version: V0. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset. https://doi.org/10.3886/E116159