Clance, M.W. (Matthew)Gozgor, GirayGupta, RanganLau, Chi Keung Marco2022-03-242022-03-242021-04Clance, M., Gozgor, G., Gupta, R. et al. 2021, 'The relationship between economic policy uncertainty and corporate tax rates', Annals of Financial Economics, vol. 16, no. 1, art. 2150002.2010-4952 (print)2010-4960 (online)10.1142/S2010495221500020http://hdl.handle.net/2263/84628This paper investigates the relationship between economic policy uncertainty and corporate tax rates in a panel dataset of 126 countries throughout 2003–2018. We use the so-called “World Uncertainty Index” to measure the level of economic policy uncertainty. We utilize various estimation techniques and find a one-way causality from economic policy uncertainty to corporate tax rates. Specifically, a rise in economic policy uncertainty leads to higher corporate tax rates. We also discuss potential implications.en© 2021 World Scientific PublishingCorporate taxationEconomic policy uncertainty (EPU)Uncertainty shocksBusiness cyclesPanel data estimation techniquesPreprint Article