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 …

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 …

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 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 …