TY - UNPD A1 - Bethmann, Inga T1 - Heterogeneity in tax rate elasticities of capital N2 - This study examines heterogeneity in tax rate elasticities of corporate capital using staggered variation in local business tax rates of German municipalities. The results suggest an average long-run capital decline of 0.97% after a 1% increase in the tax rate. In line with prior literature that suggests higher investment-cash flow sensitivities of firms with financing constraints tax rate elasticities are up to half times larger for financially constrained firms than for unconstrained firms. Moreover, capital responses are about half times larger for firms with fewer tax avoidance possibilities. Finally, this study contributes to the literature on tax incidence. I find a weaker relation between taxes and capital for firms that are less likely to bear the economic burden of the tax because they shift the tax incidence to their stakeholders. T3 - FAccT Center Working Paper Series - 24/2017 KW - Körperschaftsteuer KW - Corporate taxation KW - Lokale Steuern KW - Local taxes KW - Unternehmensinvestitionen KW - Corporate investments KW - Finanzielle Zwänge KW - Financial constraints KW - Steuerhinterziehung KW - Tax avoidance KW - Steuerinzidenz KW - Tax incidence Y1 - 2017 UR - https://opus4.kobv.de/opus4-whu/frontdoor/index/index/docId/528 UR - https://nbn-resolving.org/urn:nbn:de:hbz:992-opus4-5280 ER -