Allocation and Growth Effects of Corporate Income Taxes-Some Experiments in Quantification on a Micro-to-Macro Model of the Swedish Economy
Cite this article
as: G. Eliasson, T. Lindberg; 2024; Allocation and Growth Effects of Corporate Income Taxes-Some Experiments in Quantification on a Micro-to-Macro Model of the Swedish Economy; International Journal of Microsimulation; 17(2); 157-180.
doi: 10.34196/ijm.00294
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Figures
Figure 1
Share of investment, employment, va0lue added and operating profits in percent of total manufacturing for Engineering industries and Raw material* based industries.
Figure 2
Relative export prices 1950-1987. Index 100 = average price for all exports.
Figure 3
(A) Investments in Total Manufacturing, 1968-1987. Index 100 = Reference base case. (B) Private Consumption, 1968-1987. Index 100 = Reference base case.
Figure 4
Total Manufacturing Output, 1968-1987. Index 100 = average price for all exports.
Figure 5
(A) Ratio of Investment in Raw Materials Production (RAW) and in Engineering (DUR), 1950-1987. (B) Employment in Engineering (DUR) in percent of Total Manufacturing Employment, 1950-1987. (C) Employment in Raw Materials Production (RAW) in percent of Total Manufacturing Employment, 1950-1987. (D) Operating Profits in Engineering (DUR) in percent of Profits in Total Manufacturing, 1950-1987. (E) Operating Profits in Raw Materials Production (RAW) in percent of Profits in Total Manufacturing, 1950-1987. (F) Value Added in Engineering (DUR) in percent of Value Added in Total Manufacturing, 1950-1987. (G) Value Added in Raw Materials Production (RAW) in percent of Value Added in Total Manufacturing, 1950-1987.
Figure 6
(A) Rate of Return on Total Assets before Tax, 1968-1987. Total Manufacturing. Index 100 = Reference base case. (B) Rate of Return on Total Assets before Tax, 1968-1987. Engineering (DUR) in Relation to Total Manufacturing. Index 100 = Reference base case. (C) Rate of Return on Total Assets before Tax, 1968-1987. Raw Materials Production (RAW) in Relation to Total Manufacturing. Index 100 = Reference base case
Figure 7
Rate of Taxation* in Total Manufacturing, 1968-1987. Index 100 = Reference base case
Figure 8
Rate of Return on total capital before tax (percent)
Figure 9
Rate of Return on Net Worth before (RWN) and after (RWNT) tax 1979 (Percent).
Tables
Table 2
Real return to total capital before tax. Index 100 = References base case.
| Scenario | Foreign price development | Fiscal depreciation rate | Raw materials | Engineering | Total industry | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1968/77 | 1978/87 | 1968/87 | 1968/77 | 1978/87 | 1968/87 | 1968/77 | 1978/87 | 1968/87 | |||
| A | Neutral | 25% | 109 | 109 | 109 | 97 | 100 | 99 | 98 | 98 | 98 |
| 5% | 105 | 153 | 129 | 86 | 89 | 87 | 96 | 105 | 100 | ||
| B | Slow | 25% | 68 | 10 | 39 | 122 | 176 | 149 | 105 | 139 | 122 |
| pivoting | 5% | 82 | - | - | 105 | - | - | 99 | - | - | |
| C | Fast | 25% | 97 | 23 | 60 | 106 | 164 | 135 | 98 | 105 | 101 |
| pivoting | 5% | 97 | 20 | 58 | 91 | 166 | 128 | 97 | 139 | 118 | |
| 5-25 % | 95 | 21 | 58 | 91 | 168 | 130 | 96 | 121 | 109 | ||
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Note: The profitability in the two sectors is expressed in relation to total industry.
Table 1
Investment and output effects of fiscal experiments in manufacturing. In percent of reference base case (= 100) on the average.
| Investment | Output | Raw material output | Number of firms closed down* | |||||
|---|---|---|---|---|---|---|---|---|
| 1968-77 | 1968-87 | 1968-77 | 1968-87 | 1974 | 1977 | 1987 | ||
| A-EXPERIMENTS Base case, with fast write-off | 110 | 110 | 104 | 103 | 100 | 102 | 110 | 0 |
| Base case, with slow write-off | 73 | 105 | 100 | 97 | 99 | 97 | 128 | 0 |
| B-EXPERIMENTS Slow price pivoting, with fast write-off | 123 | 123 | 104 | 109 | 89 | 74 | 81 | 11 |
| Slow price pivoting, with slow write-off | 75 | - | 100 | - | 94 | 76 | - | 0 |
| C-EXPERIMENTS | ||||||||
| Fast price pivoting with fast write-off | 110 | 102 | 104 | 102 | 100 | 99 | 64 | 12 |
| Fast price pivoting with slow write-off until 1987 | 73 | 128 | 99 | 102 | 98 | 93 | 58 | 7 |
| Fast price pivoting with slow write-off through 1973, then fast | 87 | 132 | 100 | 104 | 98 | 94 | 50 | 9 |
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*
All in raw material sector and after 1980. Initial number of firms in each sector is 15.
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