Tax Reform, Investment, and the Value of the Firm /
Auerbach, Alan J.
Tax Reform, Investment, and the Value of the Firm / Alan J. Auerbach, James R. Hines Jr.. - Cambridge, Mass. National Bureau of Economic Research 1986. - 1 online resource: illustrations (black and white); - NBER working paper series no. w1803 . - Working Paper Series (National Bureau of Economic Research) no. w1803. .
1986.
The taxation of corporate assets is well understood to influence investment and firm valuation. This paper explores the consequences of postwar U.S. tax changes in a dynamic model which incorporates costs of adjustment and investor expectations of future tax reforms and macroeconomic variability.When viewed in a dynamic context, the tax code can have very different incentives than those implied by the usual static analysis. Simulation results suggest that investment is sensitive to future tax changes and business-cycle movements. The paper also illustrates the implications of this analysis for the design of tax reforms.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.
Tax Reform, Investment, and the Value of the Firm / Alan J. Auerbach, James R. Hines Jr.. - Cambridge, Mass. National Bureau of Economic Research 1986. - 1 online resource: illustrations (black and white); - NBER working paper series no. w1803 . - Working Paper Series (National Bureau of Economic Research) no. w1803. .
1986.
The taxation of corporate assets is well understood to influence investment and firm valuation. This paper explores the consequences of postwar U.S. tax changes in a dynamic model which incorporates costs of adjustment and investor expectations of future tax reforms and macroeconomic variability.When viewed in a dynamic context, the tax code can have very different incentives than those implied by the usual static analysis. Simulation results suggest that investment is sensitive to future tax changes and business-cycle movements. The paper also illustrates the implications of this analysis for the design of tax reforms.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.