Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/280551 
Year of Publication: 
2018
Series/Report no.: 
AEI Economics Working Paper No. 2016-15
Version Description: 
Updated March 2018
Publisher: 
American Enterprise Institute (AEI), Washington, DC
Abstract: 
Businesses are "burdened" by government through corporate taxes and bureaucratic procedures. We interpret these two channels as tools for raising revenue and study, theoretically and empirically, how different political institutions rely on these tools. We establish two stylized facts: the degree of democracy has inverted-U relationships with both the bureaucratic and tax burdens. We match these facts with a dynamic political-economic model of fiscal policy where revenues are raised through the burden on businesses and the returns to public capital, and where the degree of democracy is modeled as the limit on the appropriation of capital by misbehaving politicians.
Subjects: 
Regulation
corporate taxes
business
bureaucracy
institutions
JEL: 
A
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.