Lower Taxes, More Growth?

Our study on corporate taxation became a central reference in Chile's presidential policy debate.

Emol featured Bold Economics’ report Lower Taxes, More Investment? The Effects of Reducing Corporate Taxes in Chile, authored by Christian F. Jiménez, Managing Director and international tax economist, together with associate economist Martín Gutiérrez. Using a SVAR econometric model applied to quarterly time series since 1996, the study estimates that a one-percentage-point reduction in the corporate income tax rate is associated with a 5.8% increase in investment, materializing over the following two to three quarters. Based on data through the first half of 2025, this translates to approximately USD 750 million in additional investment. The article captures an academic debate over the magnitude of this effect, in which Bold Economics’ work served as the central reference point.