Commentators on the private equity industry often claim that favorable tax treatment gives private equity firms advantages in the market for corporate control. But we show that tax advantages do not affect the equilibrium ownership of corporate assets when acquisition costs are fully deductible...

In times of inflation, most existing systems of taxation introduce new distortions into the allocation of resources. In this paper, the effects of inflation via taxes on the firm's east of capital are analyzed. The taxes considered are the corporate income tax and household taxes on dividends...

Several attempts have been made to determine the tax differential between the corporate and non-corporate sectors of the economy, implied by the present double taxation of corporate source income. A common feature of these studies is the assumption that the retention of corporate profits gives...

Taxation theory rarely takes entrepreneurship into consideration. We discuss how this omission affects conclusions derived from standard models of capital taxation when applied to entrepreneurial income. Some of the defining features of entrepreneurship often omitted by standard capital taxation...

Several recent articles claim that pre-tax income equlity promotes growth. Equality is argued to dampen demand for redistributive economic policies that tax returns to growth-enhancing activities such as investment. These results rest heavly on the assumption that pre-tax income equality is an...

The analysis provides a new explanation for two widespread problems concerning European unemployment policy: the disappointingly small effect of many past reform measures on unemployment, and the political difficulties in implementing more extensive reform programs. We argue that the heart of...

The analysis provides a new explanation for two widespread problems concerning European unemployment policy: the Disappointingly small effect of many past reform measures on unemployment, and the political difficulties in implementing more extensive reform programs.