Chinese Capital Utilization Rate, Burden of Corporate Taxation and Structure Adjustment
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| Title | Chinese Capital Utilization Rate, Burden of Corporate Taxation and Structure Adjustment
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| Author | Gong Min, Xie Pan and Li Wen Pu |
| Organization | XiaMen University |
| Email | mgong@xmu.edu.cn；xiepan@xmu.edu.cn；wpli@xmu.edu.cn |
| Key Words | Capital Utilization Rate; Fixed Assets Accelerated Depreciation Policy; DSGE |
| Abstract | We analysis the influence on capital utilization rate, economic growth and economic structure stemmed from technological progress shock, fixed assets accelerated depreciation rate and adjusting income-tax rate of the corporation in a framework of DSGE embedded endogenous capital utilization rate. We find out several conclusions. Firstly, technological progress not only raise Chinese capital utilization rate, but reduce capital-output ratio and improve economic structure. Secondly, policies which allowed corporate to accelerate fixed asset depreciation will reduce tax burden in short run, but drop capital utilization rate. However, income-tax rate of the corporation should be raised properly so as to increase long-term capital utilization rate and lower capital-output ratio when enterprise has updated equipment and propel scientific and technologic research in long run. |
| Serial Number | WP846 |
| Time | 2015-03-27 |
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