Taxation, bank leverage, and financial crises / Ruud de Mooij, Michael Keen, and Masanori Orihara.
"That most corporate tax systems favor debt over equity finance is now widely recognized as, potentially, amplifying risks to financial stability. This paper makes a first attempt to explore, empirically, the link between this tax bias and the probability of financial crisis. It finds that grea...
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| Online Access: | Electronic book from EBSCO |
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| Main Author: | |
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| Format: | eBook |
| Language: | English |
| Published: | [Washington, D.C.] : International Monetary Fund, Ã2013. |
| Series: | IMF working paper ;
WP/13/48. |
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Table of Contents:
- Cover; Contents; I. Introduction; II. Methodology and Data; A. The Effect of Taxation on Leverage; B. The Effect of Leverage on the Probability of Banking Crisis; Tables; 1. Partition of Banks by Size; C. Simulating Tax Effects on the Probability of Crisis; III. Results; A. The Effect of Taxation on Leverage; 2. Effect of Tax on Leverage: Bank-level Data; 3. Estimated Effect of Tax on Bank Leverage for Alternative Size Groups; 4. Effect of Tax on Leverage: Country-level Data; B. The Effect of Leverage on the Probability of Banking Crisis.
- 5. Effect of Leverage on the Odds Ratio of a Banking Crisis6. Marginal Impact of Leverage on the Probability of Banking Crisis; IV. Policy Simulations; Figure 1. Relationship between Initial Leverage and the Probability of Banking Crisis; 7. Marginal Impact of Tax on the Probability of Banking Crisis; 8. Simulated 4-year Cumulative Expected Output Gain of Three Tax Reforms; V. Conclusion; Appendix 1. Data; Table A1. Summary Statistics of Data in the Leverage Regression using Micro Data; Table A2. Summary Statistics of Data in the Regressions using Macro Data; References.