%0 Journal Article
%T Measuring the impact of financial taxation on capital: evidence from Chilean manufacturing plants
%A Francisco Parro
%A Juan A. Correa
%A Miguel Lorca
%J Journal of Applied Economics
%D 2019
%R https://doi.org/10.1080/15140326.2018.1526866
%X ABSTRACT Using panel data from Chilean manufacturing plants, we estimate the impact of a stamp tax, levied on loans by financial institutions, on capital stock. Our results show that the tax has a statistically significant negative effect on the stock of capital. Specifically, we find that a rise of one percentage point in the financial tax rate decreases the stock of capital by about 4%. We also find that the impact on firms is heterogeneous, depending on the intensity of the different types of capital they hold. In particular, the demand for capital from firms with a higher percentage of structural assets, such as land and buildings, is relatively less affected by the tax
%U https://www.tandfonline.com/doi/full/10.1080/15140326.2018.1526866