Debt Bias in Corporate Taxation and the Costs of Banking Crises in the EU - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Debt Bias in Corporate Taxation and the Costs of Banking Crises in the EU write by . This book was released on 2014. Debt Bias in Corporate Taxation and the Costs of Banking Crises in the EU available in PDF, EPUB and Kindle. This study points to a relation between corporate taxation, bank leverage and costs of financial crises. The authors first estimate the effect of corporate taxation on bank leverage with a series of panel regressions, building on the methodology of Keen and Mooij, but focusing on a sample of 3,000 EU banks using data spanning the period 2001-2011. In a second step, they measure the potential reduction in public finance costs in financial crises that would result from reducing banks' incentives for debt financing compared to equity financing, using an actual bank balance-sheet-based model of costs of systemic crisis (SYMBOL-model) for six EU member states. Finally, they show under which conditions the results hold when varying the sensitivity of leverage to corporate income tax, when asset portfolio risk is adjusted together with bank leverage, and when allowing for increased asset portfolio risk.
Debt Bias in Corporate Taxation and the Costs of Banking Crises in the EU
Debt Bias in Corporate Taxation and the Costs of Banking Crises in the EU - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Debt Bias in Corporate Taxation and the Costs of Banking Crises in the EU write by Sven Langedijk. This book was released on 2014. Debt Bias in Corporate Taxation and the Costs of Banking Crises in the EU available in PDF, EPUB and Kindle.
Debt Bias in Corporate Income Taxation and the Costs of Banking Crises
Debt Bias in Corporate Income Taxation and the Costs of Banking Crises - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Debt Bias in Corporate Income Taxation and the Costs of Banking Crises write by Sven Langedijk. This book was released on 2015. Debt Bias in Corporate Income Taxation and the Costs of Banking Crises available in PDF, EPUB and Kindle. Corporate income taxation (CIT) in most countries favors debt over equity financing, leading to over-indebtedness. This problem is particularly acute for the financial sector. We estimate financial-stability benefits of eliminating this debt bias. We estimate the long-run effects of CIT on bank leverage and, using a Vasicek-based model of banking crisis losses, we find that eliminating this debt bias could reduce public finance losses in the range of 30 to 70%. These results hold even for conservative estimates of bank-leverage and portfolio-risk effects of CIT changes.
Debt Bias and Other Distortions
Debt Bias and Other Distortions - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Debt Bias and Other Distortions write by International Monetary Fund. Fiscal Affairs Dept.. This book was released on 2009-12-06. Debt Bias and Other Distortions available in PDF, EPUB and Kindle. Tax distortions are likely to have encouraged excessive leveraging and other financial market problems evident in the crisis. These effects have been little explored, but are potentially macro-relevant. Taxation can result, for example, in a net subsidy to borrowing of hundreds of basis points, raising debt-equity ratios and vulnerabilities from capital inflows. This paper reviews key channels by which tax distortions can significantly affect financial markets, drawing implications for tax design once the crisis has passed.
Tax Biases to Debt Finance
Tax Biases to Debt Finance - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Tax Biases to Debt Finance write by Ruud A. de Mooij. This book was released on 2011-05-03. Tax Biases to Debt Finance available in PDF, EPUB and Kindle. Staff Discussion Notes showcase the latest policy-related analysis and research being developed by individual IMF staff and are published to elicit comment and to further debate. These papers are generally brief and written in nontechnical language, and so are aimed at a broad audience interested in economic policy issues. This Web-only series replaced Staff Position Notes in January 2011.
