Tax Incentives and Borrowing

Sule Alan; Søren Leth-Petersen; Anders Munk-Nielsen

doi:10.1016/j.econlet.2016.06.014

Tax Incentives and Borrowing

Sule Alan, Søren Leth-Petersen, Anders Munk-Nielsen

Økonomisk Institut

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › peer review

2 Citationer (Scopus)

Abstract

We estimate the effect of a Danish 1987 tax reform, which reduced the tax rate applied to interest deductions from 73% to 50% for households with high incomes, but less for households with middle or low incomes. Using high quality panel data we find that households responded to the reduced tax subsidy by lowering interest payments and we find that the responsiveness to the tax subsidy varies by the initial level of interest payments.

Originalsprog	Engelsk
Tidsskrift	Economics Letters
Vol/bind	145
Sider (fra-til)	162–164
ISSN	0165-1765
DOI	https://doi.org/10.1016/j.econlet.2016.06.014
Status	Udgivet - 2016

Adgang til dokumentet

10.1016/j.econlet.2016.06.014

Citationsformater

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abstract = "We estimate the effect of a Danish 1987 tax reform, which reduced the tax rate applied to interest deductions from 73% to 50% for households with high incomes, but less for households with middle or low incomes. Using high quality panel data we find that households responded to the reduced tax subsidy by lowering interest payments and we find that the responsiveness to the tax subsidy varies by the initial level of interest payments.",

author = "Sule Alan and S{\o}ren Leth-Petersen and Anders Munk-Nielsen",

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T1 - Tax Incentives and Borrowing

AU - Alan, Sule

AU - Leth-Petersen, Søren

AU - Munk-Nielsen, Anders

PY - 2016

Y1 - 2016

N2 - We estimate the effect of a Danish 1987 tax reform, which reduced the tax rate applied to interest deductions from 73% to 50% for households with high incomes, but less for households with middle or low incomes. Using high quality panel data we find that households responded to the reduced tax subsidy by lowering interest payments and we find that the responsiveness to the tax subsidy varies by the initial level of interest payments.

AB - We estimate the effect of a Danish 1987 tax reform, which reduced the tax rate applied to interest deductions from 73% to 50% for households with high incomes, but less for households with middle or low incomes. Using high quality panel data we find that households responded to the reduced tax subsidy by lowering interest payments and we find that the responsiveness to the tax subsidy varies by the initial level of interest payments.

U2 - 10.1016/j.econlet.2016.06.014

DO - 10.1016/j.econlet.2016.06.014

M3 - Journal article

VL - 145

SP - 162

EP - 164

JO - Economics Letters

JF - Economics Letters

SN - 0165-1765

ER -