TY - BOOK ID - 84541074 TI - Effective Average Tax Rates for Permanent Investment PY - 2008 SN - 1462306365 1452765235 1283511428 1451913710 9786613823878 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Investments KW - Taxation KW - Tax rates KW - Tax tables KW - Investing KW - Investment management KW - Portfolio KW - Finance KW - Disinvestment KW - Loans KW - Saving and investment KW - Speculation KW - Econometric models. KW - Rates and tables. KW - Investments: General KW - Taxation, Subsidies, and Revenue: General KW - Investment KW - Capital KW - Intangible Capital KW - Capacity KW - Public finance & taxation KW - Macroeconomics KW - Depreciation KW - Effective tax rate KW - Tax holidays KW - Average effective tax rate KW - Marginal effective tax rate KW - Tax administration and procedure KW - Tax incentives KW - Canada UR - https://www.unicat.be/uniCat?func=search&query=sysid:84541074 AB - This paper extends the effective average tax rate (EATR) developed in Devereux and Griffith (2003) by relaxing the assumption of a one-period perturbation in the capital stock. Instead it allows a permanent investment. While this may appear a small change, it has important implications. First, it allows the EATR to be calculated in the presence of tax holidays, which are an important part of tax systems, especially in developing countries. Second, it reveals an interesting feature of the original EATR: despite the assumption of a one-period investment, the original measure is informative about long-term investments, thanks to the assumption of pooled depreciation. Without this assumption-which is justifiable in a few countries only- the EATR based on one-period perturbation in the capital stock would be less useful for analyzing medium and long-term investments. ER -