The present paper analyses the effect of the interaction between tax rules and inflation on the size and allocation of … show that, with current U.S. tax laws, an increase in the rate of inflation reduces the equilibrium amount of business … inflation lowers the real net-of-tax rate of return to the provider of business capital. In a richer model than the current one …

This paper discusses the effects of the interaction between inflation and the taxation of capital income. The principal … conclusions are: (1) Inflation substantially increases the total effective tax rate on the income from capital used in the … between inflation and existing tax rules contributed to the fall in the ratio of share prices to real pretax earnings, or …

the period from 1953 through1978. The analysis emphasizes that the Interaction of inflation and existing tax rules has …

This paper presents an explicit model of portfolio demand and uses it to show how the rate of inflation and its … papers which studied how the interaction of inflation and tax rules alter the real prices of land and stock. The analysis …

This paper shows how the interaction of tax rules and expected inflation can decrease substantially the share price per …

With the existing "historic cost" method of depreciation, higher inflation rates reduce the real value of future … the net cost can be quite substantial at recent inflation rates; e.g., the real net cost of an equipment investment with a … 13 year tax life is raised 21 percent by an 8 percent expected inflation rate if the firm uses a 4 percent real discount …

JamesTobin, relies on increasing the rate of inflation and making money less attractive relative to real capital. In Tobin …. This paper will examine ways of increasing capital intensity without raising the rate of inflation. The analysis will also … show why, contrary to Tobin's conclusion, a higher rate of inflation may not succeed in increasing investors' willingness …

sustained inflation are small relative to the costs of unemployment. If a temporary reduction in unemployment causes a permanent … increase in inflation, the present value of the resulting future welfare costs may well exceed the temporary short-run gain …. Previous analyses have underestimated the cost of a permanent increase in the inflation rate because they have ignored the …

Going from low inflation to price stability involves a short term loss (associated with the" higher unemployment rate … required to reduce the inflation) and results in a series of welfare gains" in all future years. The primary source of these … gains is the reduction in the distortions that result" from the interaction of tax rules and inflation. The paper quantifies …

calculating the gain from price stability, the paper emphasizes the distortions caused by the interaction of inflation and capital … income taxes. Because inflation exacerbates the tax distortions that would exist even with price stability, the annual … deadweight loss of a two percent inflation rate is a surprisingly large one percent of GDP. Since the real gain from shifting to …