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Corporate Tax Changes and Credit

Date: 15th March 2019
Time: 14:00
Location: KB1-11, First Floor, Kemmy Business School

Department of Economics Seminar


Yota Deli
School of Economics, University College Dublin



Investment Tax Incentives and their Big Time-to-Build Fiscal Multiplier


Dimitris Bermperoglou (Kiel Institute of the World Economy)
Sarantis Kalyvitis (Athens University of Economics and Business)

Date:   Friday 15th March, 14h00-15h00
Venue:   Kemmy Business School, KB1-11
All are welcome to attend.


Yota Deli is an Assistant Professor in the School of Economics, University College Dublin, Ireland.  Prior to her post in UCD, she was a lecturer in the Adam Smith Business School, and a post-doctoral fellow in Economics in the ESRI (Ireland).
Yota’s research interests are in the fields of Macroeconomics and Banking, Fiscal Policy and Taxation, Property and Economic Inequality.
She completed her PhD in Economics in Athens University of Economics and Business (Greece).  During her PhD, she was working on DSGE models with different assumptions for the depreciation function to better understand investment and capital utilization and maintenance decisions.  At the same time Yota was working on the empirical literature of banking and in particular the economic effects of macro-prudential policy and banking regulation. Yota Deli’s research up to now has been published in the Journal of Banking and Finance, and in the Journal of International Money and Finance.”


This paper studies the impact of investment tax incentives as a tool to stimulate output in the context of a medium scale DSGE model, which allows for a variety of fiscal financing mechanisms. We find that the horizon following a positive shock in investment tax incentives is crucial: the shock is highly expansionary in the long run, with the relevant fiscal multiplier substantially exceeding 1, but this effect only becomes visible after 2 to 3 years. Our quantitative analysis indicates that this expansion is triggered by the rise in the marginal product of labor and the demand for labor.

Department of Economics Seminars