Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/286136 
Title (translated): 
Private investment, government expenditure and taxes in the European Union
Year of Publication: 
2018
Citation: 
[Journal:] Revista de Métodos Cuantitativos para la Economía y la Empresa [ISSN:] 1886-516X [Volume:] 26 [Year:] 2018 [Pages:] 3-24
Publisher: 
Universidad Pablo de Olavide, Sevilla
Abstract (Translated): 
Using the same model that Caballero-Urdiales {\it et al.} (2012) and Brito-Gaona and Iglesias (2017) applied to Latin-American countries, we extend their analysis to the European Union (EU) in order to analyze the determinants of private investment. Results show consistent evidence with three hypotheses that, in some cases, are very different from those found in Latin America: First, both consumption and income taxes have significant effects on private investment, the same as happens in Latin America. Moreover, in the EU and Europe in general, corporate taxes are the lowest at worldwide level and much lower than in Latin America. We also find evidence in favor of the hypothesis that corporate income taxes do not affect private investment. Second, opposite to what happens in Latin America, public investment does not have significant effects on the evolution of private investment. And third, in order to stimulate private investment, government intervention has a negative effect, as happens in Latin America.
Subjects: 
Private investment
gross domestic product
government ex- penditure
income tax
value-added tax
JEL: 
F21
H24
H25
H54
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-sa Logo
Document Type: 
Article

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