Seminar
Forskningsseminar: Tax neutrality, entry and discoveries: Evidence from oil drilling in the North Sea
- Foredragsholder
- Torfinn Harding, NHH
- Dato
- 10. desember 2019
- Når
- 11:45 - 12:45
- Hvor
- Auditoriet, SSB, Akersveien 26
Innhold
Torfinn Harding, NHH: https://www.nhh.no/en/employees/faculty/torfinn-harding/
Tax neutrality, entry and discoveries: Evidence from oil drilling in the North Sea
Abstract:
Cash-flow taxation calls for cash refunds to loss-making firms to leave entry and exit decisions undistorted. We study the introduction of such a refund program in the Norwegian petroleum sector in 2005. Using data on oil exploration in Norway and the UK, we find that the program generated 37% of all new wells, but only 6% of all new discoveries in the period 2005-2015. The drastic drop in discovery rates is consistent with a common value model with endogenous entry. We find that the social benefits of the new discoveries are roughly offset by the cost of dry wells.
Praktisk informasjon
Servering av kaffe, te og baguetter fra 11:30