Working papers results

2016 - n° 86
This article analyzes the relative level and evolution of the net nutritional status of manufacturing workers and craftsmen born in the last third of the eighteenth century in central Spain. It uses the anthropometric and occupational data included in the records of the general conscription carried out during the Napoleonic invasion. The findings are interpreted in light of the recent contributions made regarding the evolution of the economy and industrial products of central Spain during the second half of the eighteenth century. Significant differences can be observed between the different professions and economic sectors, largely explained by income levels, a possible selection for some occupations in accordance with physical characteristics, and access to animal proteins. Furthermore, the data also reveal an overall decrease in height and an increase in inequality between professions during the period.
Hector Garcia-Montero
Keywords: Nutritional status,Central Spain,eighteenth century,height,inequality
2016 - n° 85
How do tax incentives affect firms’ investment? Using confidential UK corporation tax returns, we provide new evidence on the effects of incentives in the form of depreciation allowances. We exploit a 2004 exogenous change in the qualifying thresholds for the first-year depreciation allowances (FYAs) and conduct a difference-in-difference analysis. Results suggest that the investment rate increased between 2.1 and 2.6 percentage points when firms became qualified for FYAs, relative to firms that never qualified. This implies an increase in investment rate of 11 percent at the mean. We exploit exogenous variation in the timing of tax payments to show that this large effect is not due to an increase in available cash and hence, this is primarily a cost of capital effect. Firms respond rather quickly to FYAs, within 12 to 18 months. Firms also bunch just below notches in the cost of capital created by the qualifying thresholds, suggesting salience of the FYAs. Such behaviour does not drive our main results.
Giorgia Maffini, Jing Xing, Michael P. Devereux
Keywords: investment,corporate tax,depreciation allowances,SMEs
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