Empirical Studies on the Effect of Property Tax on Capital Investment

Kobayasi Yohei, Sato Motohiro, Suzuki Masaaki

doi:10.50898/pfsjipf.16.0_172

Bibliographic Information

Other Title

設備投資に対する固定資産税の実証分析

Abstract

<p> Property tax has been identified as a case of a “good” local tax in the literature. Such argument, however, presumes that property tax is levied solely on land. In practice, property tax applies to housing and depreciable assets such as machinery and buildings, which implies a feature of capital tax. It is known that capital tax distorts capital investment. The present paper analyzes the effects of property tax on capital investment. To be concrete, we use panel data of manufacture census such as Census of Manufacture and Economic Census for Business Activity, and examine how property tax on depreciable assets in Japan affects capital investments by small and medium enterprises. It is established that property tax negatively affects their investment and such adverse effects are exacerbated among enterprises with liquidity constraints.</p>

Journal

Public Finance Studies

Public Finance Studies 16 (0), 172-189, 2020

Japan Institute of Public Finance

Details 詳細情報について

CRID: 1390572255234715904

NII Article ID: 130008142851

DOI: 10.50898/pfsjipf.16.0_172

ISSN: 24363421

Text Lang: ja

Data Source

JaLC
CiNii Articles
KAKEN

Abstract License Flag: Allowed

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