This project analyzes quantitatively who actually bears the burden of the corporate income tax and how much of this burden is borne by the people by building a theoretical model and implementing econometric analyses. This project seeks to find facts that benefits resulting from the reduction of the corporate income tax rate go beyond corporations, and to derive policy implications on the reform of corporate income taxation. In theoretical analysis, the focus is to build a dynamic macroeconomic model with equipment investment and corporate finance in order to investigate incidences of corporate income tax. In econometric analyses using corporate financial statements, we will seek to describe realistic firm behaviors based on the theoretical model. From these results, we will identify quantitatively the degree to which such incidences of corporate income tax affect labor and capital incomes.
June 2, 2014 - August 31, 2016