Corre la voz

We introduce the concept of weak tax neutrality that establishes that the relationship between the tax rate and the user cost of capital may be non‐monotonic. We show that most existing corporate tax systems allow for weak neutrality. That is, given the tax allowances permitted by these systems, it is possible that neutrality may arise for at least one positive corporate tax rate. Moreover, we show the practical relevance of weak neutrality in realistic situations where there are several asset types and heterogeneous levels of firms’ debt ratios.

Autor

  • Profesor titular y director de los programas de Magister y Doctorado del Departamento de Economía de la Universidad de Chile. Durante 20 años fue profesor titular de la Universidad de Maryland, EE.UU. Es ingeniero agrónomo (mención Economía Agraria) de la Universidad de Chile; M.Sc. en Agricultural Economics y Ph.D. en Economics de la Universidad de British Columbia, Canadá.