{"type":"script","doc_desc":{"producers":[{"name":"Krestel","abbr":"CK","affiliation":"World Bank"}],"prod_date":"2023-07-25","version":"1"},"project_desc":{"authoring_entity":[{"name":"Pierre Bachas","affiliation":"World Bank","email":"pbachas@worldbank.org"},{"name":"Mauricio Soto","affiliation":"Superintendency of Pensions of Costa Rica","email":"mausot84@gmail.com"}],"output":[{"type":"Published Paper","title":"Corporate Taxation under Weak Enforcement","authors":"Pierre Bachas, Mauricio Soto","uri":"https:\/\/www.aeaweb.org\/articles?id=10.1257\/pol.20180564","doi":"https:\/\/doi.org\/10.1257\/pol.20180564"}],"software":[{"name":"Stata"}],"scripts":[{"file_name":"PP_CRI_2018_PRWP-8524_prg_v01.zip","zip_package":"PP_CRI_2018_PRWP-8524_prg_v01.zip","title":"Reproducibility package (data and code) for Corporate Taxation under Weak Enforcement","date":"2021-11","software":"Stata","dependencies":"grc1leg, expand, estout, outreg, outtable, frmttable","source_code_repo":"AEA Data and Code Repository (ICPSR)","notes":"Checked for reproducibility externally at the journal.","license":[{"name":"Creative Commons Attribution 4.0 International (CC BY 4.0) License","uri":" https:\/\/creativecommons.org\/licenses\/by\/4.0\/"}],"instructions":"See readme in reproducibility package"}],"title_statement":{"idno":"PP_CRI_2018_PRWP-8524_v01","title":"Reproducibility package for Corporate Taxation under Weak Enforcement","identifiers":[{"type":"DOI","identifier":"https:\/\/doi.org\/10.3886\/E120688V1"}]},"reproducibility_status":{"type":"Partial access","note":"Some elements of the code or data are confidential and are not included in the reproducibility package. The readme specifies what elements can be reproduced"},"sponsors":[{"name":"Burch Center for Tax Policy"},{"name":"Center for Equitable Growth at UC Berkeley"},{"name":"Julis-Rabinowitz Center for Public Policy and Finance at Princeton"}],"acknowledgment_statement":"We gratefully acknowledge data assistance by Oscar Fonseca and Jorge Richard Munoz from DGH at the Ministry of Finance and DGIE and DIE at BCCR. We thank Edward Miguel and Emmanuel Saez for their support and encouragement; we also benefited from suggestions and comments by Miguel Almunia, Juan Pablo Atal, Alan Auerbach, Youssef Benzarti, Michael Best, Anne Brockmeyer, Natalie Cox, Paul Gertler, Anders Jensen, Claus Kreiner, Etienne Lehman, Joana Naritomi, Alvaro Ramos, Andres Rodriguez Clare, Dan Silverman, Joel Slemrod, Danny Yagan, Andrew Zeitlin, Gabriel Zucman, and seminar participants at Columbia, IDB, IFS, Michigan, Munich, the Oxford Center for Business Taxation, Paris II, Princeton, TSE, UC Berkeley, Universidad de Costa Rica, UPF, World Bank DEC, and ZEW, Zurich. ","production_date":"2021-11","abstract":"How should developing countries tax corporate income? We study this question in Costa Rica, where firms face higher average tax rates on profits when revenues marginally increase. We combine discontinuity and bunching designs to estimate the elasticity of taxable profit and separate it into revenue and cost elasticities. We find that firms faced with a higher tax rate slightly reduce revenues but considerably increase costs, thus producing a large elasticity of taxable profit of 3\u20135. In this context, the revenue-maximizing rate for a corporate tax on profit is below 25 percent, and we show that a tax policy that broadens the base while lowering the rate can almost double the tax revenue collected from these firms.","geographic_units":[{"name":"Costa Rica","code":"CRI","type":"cty"}],"topics":[{"id":" D22","name":"Firm Behavior: Empirical Analysis","vocabulary":"JEL Classifications","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php"},{"id":"H25","name":"Business Taxes and Subsidies","vocabulary":"JEL Classifications","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php"},{"id":"H26","name":"Tax Evasion and Avoidance","vocabulary":"JEL Classifications","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php"},{"id":"H32","name":"Firm","vocabulary":"JEL Classifications","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php"},{"id":"K34","name":"Tax Law","vocabulary":"JEL Classifications","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php"},{"id":"L25","name":"Firm Performance: Size, Diversification, and Scope","vocabulary":"JEL Classifications","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php"},{"id":"O23","name":"Fiscal and Monetary Policy in Development","vocabulary":"JEL Classifications","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php"}],"language":[{"name":"English","code":"EN"}],"data_statement":"The main data used in the analysis is Costa Rican administrative firm level tax returns, accessed through the Ministry of Finance (MoF). The data are physically stored on computers at the Ministerio  de Hancienda, in San Jose, Costa Rica, and due to security reasons the data may not be transferred to computers outside the Finance Ministry. Researchers interested in obtaining access to the data employed in this paper can contact the Ministerio de Hancienda, Departamento de Estadisticas Fiscales, Division de Politica Fiscal. These data are not meant to become public and will remain restricted-access. However, aggregated\/tabulated data which was provided to us by the MoF and which groups firms by bins of revenue is provided, which enables the replication of most figures and tables in the paper. These tabulated data are directly provided to us, upon description of the bins of revenue and thus do not have a source file. The Ministry of Finance does not keep archival snapshots of its database.\n\nThe other information used in the appendix includes administrative register data from the Central bank of Costa Rica. The dataset is titled \u201cRegistro de variables economicas del Banco Central de CostaRica  (Revec)\u201d and contains firm-level tax return data, combined with information on employment from social security, and data on economic affiliates. The data are physically stored on computers at the Banco Central, in San Jose, Costa Rica, and due to security reasons the data may not be transferred to computers outside the Central Bank. Researchers interested in obtaining access to the data\nemployed in this paper can contact the Banco Central de Costa Rica, Division Economica, Departamento de Investigacion Economica. These data are not meant to become public and will remain restricted-access. Aggregated\/tabulated data which was provided to us by the MoF and\nwhich groups firms by bins of revenue is provided, which enables the replication of most figures and tables in the paper.\nFurther data is public and described in the readme file.","methods":[{"name":"Discontinuity design"},{"name":"Bunching design"}],"repository_uri":[{"name":"AEA Data and Code Repository","uri":"https:\/\/www.openicpsr.org\/openicpsr\/aea"}],"reproduction_instructions":"A readme file with detailed instructions is part of the (external) reproducibility package.","disclaimer":"The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development\/the World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.","confidentiality":"Yes, please refer to the data statement and the readme file.","license":[{"name":"Creative Commons Attribution 4.0 International (CC BY 4.0) License","uri":"  https:\/\/creativecommons.org\/licenses\/by\/4.0\/"}],"contacts":[{"name":"Pierre Bachas","role":"Author","affiliation":"World Bank","email":"pbachas@worldbank.org"},{"name":"Reproducibility WBG","email":"reproducibility@worldbank.org","uri":"reproducibility.worldbank.org"}]},"tags":[{"tag":"Partially Reproducible"},{"tag":"Published Paper"}],"schematype":"script"}