The real effects of Norway's wealth tax policy
Master thesis
Permanent lenke
http://hdl.handle.net/11250/2483443Utgivelsesdato
2017Metadata
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- Master of Science [1822]
Sammendrag
Norway is one of the few countries in the world that still has taxation on wealth.
Even though the tax is incremental in size, the policy is much debated in the
media and there are strong conflicting opinions on the effects of this tax policy.
The aim of the thesis was to analyze the effect changes in Norway’s wealth tax
policy has on company investments and firms’ decisions to enter or exit the
market.
Analyzing effects of a policy change, is best covered using a quasi-experimental
research design. Therefore, we have applied regression analysis and difference-indifferences
technique as the main method for data analysis.
The regression results imply that small firms’ investment opportunities are
negatively affected by Norway’s wealth tax policy. More specifically, we found
that investments in fixed assets are the main driver of effect on investments
caused by a change in the wealth tax policy. Furthermore, our results imply that
firms’ decisions to enter or exit the market is unaffected by the wealth tax policy.
Beskrivelse
Masteroppgave(MSc) in Master of Science in Finance - Handelshøyskolen BI, 2017