Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/192706 
Authors: 
Year of Publication: 
2012
Series/Report no.: 
Discussion Papers No. 724
Publisher: 
Statistics Norway, Research Department, Oslo
Abstract: 
This paper investigates if the Norwegian wealth tax imposes capital constraints on small privately held businesses. A panel of 31,428 Norwegian firms from 2005 to 2009 is used to estimate two models of capital constraints. The models are estimated using the Fixed Effects method. When firms are sorted a priori into two groups based on the wealth tax burden of the primary owner, the non-taxed firms are found to be slightly more constrained than the taxed firms, at a 10% and 5% confidence level depending on the model. Sorting based on the wealth tax is the most effective method of sorting firms into more or less constrained groups, while more traditional methods proved ineffective in this panel. The negative capital constraining effects of the wealth tax are therefore minimal; the tax affects only the private firms least reliant on internal financing
Subjects: 
Wealth Tax
Norway
Capital Constraints
JEL: 
H23
G3
Document Type: 
Working Paper

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