The firm-based simulation model presented in this paper aims to help practical policy making, by providing a tool for analyzing the behavioural effects induced by changes in the tax code and for forecasting corporate tax revenues. To achieve this end, one of the key innovations adopted in the...

This paper studies the implications of the Swedish tax reform of 1994, by explicitly modeling some unusual features of the tax code such as the Annell deduction and the tax equalization reserve (SURV). The paper is about the effects of tax policy on corporate investment and financial structure....