Alan, Sule and Leth-Petersen, Søren and Munk-Nielsen, Anders (2016) Tax incentives and borrowing. Economics Letters, 145. pp. 162-164. DOI https://doi.org/10.1016/j.econlet.2016.06.014
Alan, Sule and Leth-Petersen, Søren and Munk-Nielsen, Anders (2016) Tax incentives and borrowing. Economics Letters, 145. pp. 162-164. DOI https://doi.org/10.1016/j.econlet.2016.06.014
Alan, Sule and Leth-Petersen, Søren and Munk-Nielsen, Anders (2016) Tax incentives and borrowing. Economics Letters, 145. pp. 162-164. DOI https://doi.org/10.1016/j.econlet.2016.06.014
Abstract
We estimate the effect of the Danish 1987 tax reform, which reduced the tax rate applied to interest deductions from 73% to 50% for households with high incomes, but less for households with middle or low incomes. Using high quality panel data we find that households responded to the reduced tax subsidy by lowering interest payments and we find that the responsiveness to the tax subsidy varies by the initial level of interest payments.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | Interest rate deduction; Tax reform; Micro data |
| Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HJ Public Finance |
| Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Economics, Department of |
| SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
| Depositing User: | Unnamed user with email elements@essex.ac.uk |
| Date Deposited: | 17 Jun 2016 14:25 |
| Last Modified: | 18 Aug 2022 11:09 |
| URI: | http://repository.essex.ac.uk/id/eprint/16970 |
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