Habit persistence in effective tax rates

This paper uses administrative data from the Australian Tax Office (ATO) to model the effective tax rates (ETRs) of large Australian corporates. The extent to which there is any habit persistence in ETRs is also examined. The results suggest that unobserved entity heterogeneity is important in expla...

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Main Authors: Harris, Mark, Feeny, S.
Format: Journal Article
Language:English
Published: ROUTLEDGE TAYLOR & FRANCIS LTD 2003
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/81812
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author Harris, Mark
Feeny, S.
author_facet Harris, Mark
Feeny, S.
author_sort Harris, Mark
building Curtin Institutional Repository
collection Online Access
description This paper uses administrative data from the Australian Tax Office (ATO) to model the effective tax rates (ETRs) of large Australian corporates. The extent to which there is any habit persistence in ETRs is also examined. The results suggest that unobserved entity heterogeneity is important in explaining ETRs. In terms of observed heterogeneity, entity size, level of leverage, capital intensity, foreign income and R and D, are important explanators of ETRs. There is also evidence of a significant amount of habit persistence, implying that ETRs converge monotonically towards the statutory rate of corporation tax.
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spelling curtin-20.500.11937-818122021-03-16T03:38:25Z Habit persistence in effective tax rates Harris, Mark Feeny, S. Social Sciences Economics Business & Economics MODELS SIZE This paper uses administrative data from the Australian Tax Office (ATO) to model the effective tax rates (ETRs) of large Australian corporates. The extent to which there is any habit persistence in ETRs is also examined. The results suggest that unobserved entity heterogeneity is important in explaining ETRs. In terms of observed heterogeneity, entity size, level of leverage, capital intensity, foreign income and R and D, are important explanators of ETRs. There is also evidence of a significant amount of habit persistence, implying that ETRs converge monotonically towards the statutory rate of corporation tax. 2003 Journal Article http://hdl.handle.net/20.500.11937/81812 10.1080/0003684032000050577 English ROUTLEDGE TAYLOR & FRANCIS LTD restricted
spellingShingle Social Sciences
Economics
Business & Economics
MODELS
SIZE
Harris, Mark
Feeny, S.
Habit persistence in effective tax rates
title Habit persistence in effective tax rates
title_full Habit persistence in effective tax rates
title_fullStr Habit persistence in effective tax rates
title_full_unstemmed Habit persistence in effective tax rates
title_short Habit persistence in effective tax rates
title_sort habit persistence in effective tax rates
topic Social Sciences
Economics
Business & Economics
MODELS
SIZE
url http://hdl.handle.net/20.500.11937/81812