The Norwegian knowledge economy: Mechanisms and policy instruments

The Norwegian knowledge economy: Mechanisms and policy instruments

An empirical research project to understand the effect of taxation on Norwegian companies in a globalized economy.

By linking individual tax information with the companies' accounting figures, international investments and R&D investments, the project will study the effect of taxes and subsidies on (1) business establishment, organizational form, investments in innovation and corporate employment and profitability and (2) entrepreneurship, wealth and income for individuals who work in these companies. The project contains several sub-projects, but the overall goal is to evaluate whether and possibly how the tax system affects Norwegian companies and their employees in an international economy and to propose improvements. 

This project will run until 2026 and it will be hosted at NHH Norwegian School of Economics. In the execution of this project we plan to use administrative person-level data from the Norwegian Tax Administration and the Shareholder Registry. The data will be de-identified, so it will be impossible to match it directly to real persons. The privacy of sample individuals will not be breached, as the purpose of this project is to find information about the average person. Therefore, individual-level data is necessary only to determine what is the general behavior and the degree of variation in decisions related to capital taxation. The data will be subset by gender, general income levels, education and age categories. These categories are broad enough, so that it would not be possible from average numbers to obtain the identity of a single individual.

The data will be accessed and analyzed by Professor Arnt Ove Hopland, Professor Jarle Møen, Professor Pierpaolo Parrotta, Assistant Professor Øivind Andre Strand Aase, Assistant Professor Maximilian Todtenhaupt and Associate Professor Floris Zoutman. The data will be stored at a secure server at NHH, which requires two-factor authentication for access. After the end of the project, the data will be deleted. Data subjects will have the following rights in this project: transparency, access, rectification, erasure, restriction of processing, notification, and protest. These rights apply so long as the data subject can be identified in the collected data.

The legal basis for the processing of the personal data is thus that it is necessary to perform a task in the public interest (EU Directive 2016/679 art. 6 no. 1e, cf. §1 Personopplysningsloven). Individuals have the right to complain to the Norwegian Data Protection Authority.