Entrepreneurial innovations and taxation

Andreas Haufler, Lars Persson and Norbäck, Pehr-Johan
Authors registered in the RePEc Author Service: Pehr-Johan Norbäck

No 9157, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Stimulating entrepreneurship is high on the policy agenda of many countries. We study the effects of tax policies on entrepreneurs? choice of riskiness (quality) of an innovation project, and on their mode of commercializing the innovation (market entry versus sale). Limited loss offset provisions in the tax system induce entrepreneurs innovating for entry to choose projects with inefficiently little risk, whereas this imperfection does not arise when innovating for sale. Tax systems which systematically favor market entry of entrepreneurs can thus lead to welfare losses due to inefficient quality choices, despite leading to more competition in the product market.

Keywords: Business taxation; Innovation; Market entry (search for similar items in EconPapers)
JEL-codes: H25 L13 M13 O31 (search for similar items in EconPapers)
Date: 2012-09
New Economics Papers: this item is included in nep-ent, nep-ino, nep-ppm and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://cepr.org/publications/DP9157 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: Entrepreneurial innovations and taxation (2014)
Working Paper: Entrepreneurial Innovations and Taxation (2012)
Working Paper: Entrepreneurial innovations and taxation (2011)
Working Paper: Entrepreneurial Innovations and Taxation (2011)
Working Paper: Entrepreneurial innovations and taxation (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:9157

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP9157

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().