A0537
Title: Corporate tax reforms and the investment channel of monetary policy
Authors: Ezgi Kurt - Bentley University (United States) [presenting]
Gonzalo Basante - University of New Hampshire (United States)
Abstract: The first empirical evidence on how corporate tax policy affects the effectiveness of monetary policy on investment is presented. By examining exogenous marginal tax reforms in the US, and accounting for the dynamic nature of taxable income and the forward-looking behavior of investment, it is found that monetary policy is more effective at stimulating investment when firms face tax increases, compared to when their taxes are stable.
