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Tax Incentives to Encourage Corporate Investment in Latvia : Preliminary Version (Inglés)

This paper analyzes the effect of accelerated depreciation (AD) policy on firm investment using administrative firm-level data for 2007-14. We find that past use of AD had a positive effect on firm investment rates. The effect is stronger in industries with most of their assets in long-duration categories, among enterprises with fewer than six employees and among firms whose turnover is highly volatile. AD of new equipment has a significant effect...
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