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This paper presents a multisector general equilibrium model that is capable of providing integrated assessments of the economy's short- and long- run responses to tax policy changes. The model contains an explicit treatment of firm's investment decisions according to which producers exhibit...
Persistent link: https://www.econbiz.de/10012476941
This paper examines the interactions between tax policy, international capitol mobility, and international competitiveness. It demonstrates that tax policies which stimulate national investment without affecting national savings must inevitably lead to deterioration in a country's trade balance...
Persistent link: https://www.econbiz.de/10012477064
In this paper, we re-examine the standard analysis of the short-run effect of a personal tax cut. If consumer spending generates more money demand than other components of GNP, then tax cuts may, by increasing the demand for money, depress aggregate demand. We examine a variety of evidence and...
Persistent link: https://www.econbiz.de/10012477645
effective tax rates, some studies estimate the additional taxes associated with a marginal increase in the inflation and … interest rates, while others estimate the additional taxes associated with a marginal increase in investment. Because there are …
Persistent link: https://www.econbiz.de/10012477979
The theoretical and empirical results in this paper make a strong prima facie case for the proposition that increases in the after tax rate of return caused by tax policy are likely to bring forth significant increases in saving. Theoretical analysis using a variety of standard models tends to...
Persistent link: https://www.econbiz.de/10012478110
, however, very long. For example, it is estimated that the elimination of capital gains taxes would raise the capital stock by …
Persistent link: https://www.econbiz.de/10012478520
This paper presents an analysis of the effects of tax policy on capital accumulation and valuation based on James Tobin's q theory of investment. As Tobin has explained, aggregate investment can be expected to depend in a stable way on q, the ratio of the stock market valuation of existing...
Persistent link: https://www.econbiz.de/10012478521
This study departs from earlier analyses of the effects of taxes on capital income in several respects. Probably the …
Persistent link: https://www.econbiz.de/10012478848
endowment shocks. The government's insurance motive generates pro-cyclical taxes on capital income. If the government could …
Persistent link: https://www.econbiz.de/10012467189
Although supply side theory may have been obvious to economists, it instigated a major change in the nature of tax policymaking through marginal rate cuts in both the Economic Recovery Tax Act of 1981 and the Tax Reform Act of 1986. Also, the 1981 bill was the culmination of an era in which...
Persistent link: https://www.econbiz.de/10012475519