This paper derives and estimates models of nonresidential investment behavior in which current and future tax … postwar U.S. investment behavior, particularly for investment in machinery and equipment. In addition, the paper develops a … method for assessing the impact of tax policy on the volatility of investment when such policy is endogenous. Illustrative …

We use firm-level panel data to explore the extent to which fixed investment responds to tax reforms in 14 OECD … countries. Previous studies have often found that investment does not respond to changes in the marginal cost of investment. We … of them. In so doing, we find evidence of statistically and economically significant investment responses to tax changes …

This paper evaluates evidence of the impact of outbound foreign direct investment (FDI) on domestic investment rates …. OECD countries with high rates of outbound FDI in the 1980s and 1990s exhibited lower domestic investment than other … countries, which suggests that FDI and domestic investment are substitutes. U.S. time series data tell a very different story …

The recent literature on the sources of economic growth has challenged the traditional growth accounting of the Solow … argued in two papers that the link between equipment investment and economic growth across countries is stronger than can be … generated by the Solow model. Accordingly, they conclude that such investment yields important external benefits. However, their …

In this paper, we summarize recent advances in the study of effects of tax policy on the fixed investment decisions of … long-run tax policy that favors business investment spending …

This paper examines the investment effects of tax subsidies for which some assets and not others are eligible …. Distortionary tax subsidies encourage firms to concentrate investments in tax-favored assets profitability of investment and …, which in turn discourages investment. Borrowing rates react so strongly that aggregate investment may rise very little, or …

for investment in equipment and find that the responsiveness of Swedish firms to the user cost is quite similar to that … impact of the reform on investment is likely to have been minor and had little to do with the contemporaneous sharp drop in … investment …

The taxation of corporate assets is well understood to influence investment and firm valuation. This paper explores the … incentives than those implied by the usual static analysis. Simulation results suggest that investment is sensitive to future tax …

The Tax Reform Act of 1986 was expected to cause an overall decline in business fixed investment and a shift in the … composition of investment away from machinery and equipment, which previously had received an investment tax credit. Yet neither … investment relative to GNP nor equipment investment relative to total investment declined during the period 1987-89. This paper …