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Essays on Corporate Taxation in the Open Economy

This dissertation contains 3 essays that analyze different aspects of corporate taxation. The first essay studies optimal corporate taxes using an enhanced version of the Melitz trade model that contains heterogeneous industries and a corporate tax framework. I show that the choice of distribution for firmsâ productivity is critical as different distributions generate optimal tax rates that differ not only quantitatively but also on their qualitative properties. I show welfare losses of using the Pareto distribution, the literature standard, instead of the lognormal distribution, supported by the data. The second essay explores the link between corporate taxes and income inequality in the context of an integrated world via trade in goods and assets. The model used presents an economy with two different households: a worker who doesnât own assets and, a capitalist who owns the assets in this economy. It is shown that changes in corporate taxes lead to asymmetric welfare effects: workers suffer the negative effects for longer periods of time relative to the capitalists. The final essay uses balance sheet data from European countries to calculate their effective corporate tax rate in a way that permit its comparison across countries. Analyzing these effective rates by firm size I show that at the national level there isnât enough evidence to support the claim that larger firms pay less taxes than other firms. However, when the study is carried at the industry level I find that larger firms have a smaller tax liability in several industries, many of which are consistent across the countries included in the sample.

Identiferoai:union.ndltd.org:VANDERBILT/oai:VANDERBILTETD:etd-06232016-111643
Date05 July 2016
CreatorsBawa, Siraj Gustavo
ContributorsCraig Lewis, Mario Crucini, Eric Bond, Joel Rodrigue
PublisherVANDERBILT
Source SetsVanderbilt University Theses
LanguageEnglish
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.library.vanderbilt.edu/available/etd-06232016-111643/
Rightsunrestricted, I hereby certify that, if appropriate, I have obtained and attached hereto a written permission statement from the owner(s) of each third party copyrighted matter to be included in my thesis, dissertation, or project report, allowing distribution as specified below. I certify that the version I submitted is the same as that approved by my advisory committee. I hereby grant to Vanderbilt University or its agents the non-exclusive license to archive and make accessible, under the conditions specified below, my thesis, dissertation, or project report in whole or in part in all forms of media, now or hereafter known. I retain all other ownership rights to the copyright of the thesis, dissertation or project report. I also retain the right to use in future works (such as articles or books) all or part of this thesis, dissertation, or project report.

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