Post by Sapphire Capital on Jul 14, 2008 20:16:45 GMT 4
The Effect of Investment Tax Credit: Evidence from an Atypical Programme in Italy
GUIDO DE BLASIO
Bank of Italy; International Monetary Fund (IMF)
GUIDO PELLEGRINI
University of Bologna
ALESSANDRO SCOGNAMIGLIO
Bank of Italy
RAFFAELLO BRONZINI
Bank of Italy
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April 30, 2008
Bank of Italy Temi di Discussione (Working Paper) No. 661
Abstract:
This paper examines how business investment responds to investment tax credit, as enacted by Italy's Law 388/2000. To assess whether the programme made investments possible that otherwise would not have been made, it exploits some features of the tax credit scheme, such as the fact that some Italian regions are not deemed eligible or that the amount of the bonus differs across eligible regions. Although the programme was fiscally unsustainable, and was therefore downsized well ahead of the expiry date, our findings suggest that it has been effective in stimulating investment.
papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1151685_code606534.pdf?abstractid=1151685&mirid=1
GUIDO DE BLASIO
Bank of Italy; International Monetary Fund (IMF)
GUIDO PELLEGRINI
University of Bologna
ALESSANDRO SCOGNAMIGLIO
Bank of Italy
RAFFAELLO BRONZINI
Bank of Italy
--------------------------------------------------------------------------------
April 30, 2008
Bank of Italy Temi di Discussione (Working Paper) No. 661
Abstract:
This paper examines how business investment responds to investment tax credit, as enacted by Italy's Law 388/2000. To assess whether the programme made investments possible that otherwise would not have been made, it exploits some features of the tax credit scheme, such as the fact that some Italian regions are not deemed eligible or that the amount of the bonus differs across eligible regions. Although the programme was fiscally unsustainable, and was therefore downsized well ahead of the expiry date, our findings suggest that it has been effective in stimulating investment.
papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1151685_code606534.pdf?abstractid=1151685&mirid=1