RDP 2018-07: The GFC Investment Tax Break Appendix C: Extra DD Results

This appendix presents results from DD models using Capex Survey data aggregated to the division-by-business size level. The key difference from the business-level specification, Equation (1), is the replacement of the business fixed effects with ANZSIC division by size dummies.

Table C1: Aggregate DD Model of Equipment Capex
  Control group
$2–10 million > $2 million
η 1.76***
Clusters (division by size) 28 98
Observations 504 1,750

Notes: *** indicates significance at the 1 per cent level; standard errors are in parentheses and are clustered at the division by size level

Figure C1 shows the estimated aggregate elasticities using different control groups. These are the elasticities used to construct the estimates of the macroeconomic effects in Section 6.5.

Figure C1: Aggregate DD Estimates
By control group
Figure C1: Aggregate DD Estimates

Note: Dashed lines are 95 per cent confidence intervals