Dynamic factor adjustment and corporate tax reduction in the Japanese manufacturing industry
Bibliographic Data
| ID | 12550058 |
|---|---|
| Authors | Sangho Kim (0000-0003-0599-289X, Ritsumeikan Asia Pacific University, corresponding author), Jong-Ho Park (0000-0001-5883-8322, Sunchon National University) |
| Year | 2020 |
| Volume | 26 |
| Issue | 4 |
| Pages | 653-667 |
| Publication date | 2020-08-25 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of the Asia Pacific Economy (JOURNAL) |
| Journal identifiers | ISSN: 1354-7860 • E-ISSN: 1469-9648 |
| Publisher | Routledge (PUBLISHER • GB) |
| DOI | 10.1080/13547860.2020.1811190 |
| OpenAlex | W3080957187 |
| Language | EN |
| Citations received | 1 |
| References cited | 14 |
This study investigates dynamic factor adjustment and corporate tax reduction in Japanese manufacturing industry using a dynamic dual approach. The own-price elasticity of the output supply is negative in the long run, whereas that of demand for labor is positive both in the short- and long-run. This is consistent with facts that output grows slowly despite deflation and employment level is irresponsive to wage changes. Labor and capital reach the new equilibrium 7–11 years after policy shocks. Providing a tax reduction as an incentive to firms for raising wage turns out to boost not only capital investment but also employment
Capital (architecture · Corporate Tax · Deflation · Economics · Incentive · Labour economics · Macroeconomics · Market economy · Monetary economics · Monetary policy · Short run · Tax avoidance · Value-added tax · Wage · Corporate Taxation and Avoidance · Fiscal Policy and Economic Growth · Taxation and Compliance Studies
| Citations per year | 0.2 |
|---|---|
| Citation span | 2021 - 2021 (1) |
| Highly cited | No |