Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/190980
Authors: 
Eichfelder, Sebastian
Schneider, Kerstin
Year of Publication: 
2018
Series/Report no.: 
arqus Discussion Paper 231
Abstract: 
We analyse how tax incentives in the form of accelerated depreciations ("bonus depreciation") affect business investment. By exploiting exogenous variation in tax regulation of a regional bonus depreciation program in the former East Germany, we identify and quantify the impact from bonus depreciation on building and equipment investments at the extensive and intensive margins in the German manufacturing industry. We observe a stronger response for building investments and from large firms. There is only weak evidence of subsidy shopping but stronger evidence of investment shifting to years with more generous bonus depreciation regulations.
Subjects: 
bonus depreciation
tax incentive
business taxation
heterogeneity
JEL: 
G11
H25
H32
M41
Document Type: 
Working Paper

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