This paper contrasts Samuelson's (1964) definition of "true economic depreciation" with the use of this term that has become standard in the more recent literature on neutral business taxes. Samuelson defined "economic depreciation" to be the change in the economic value of an asset, whilst the...

Double taxation of company dividends is reduced in the UK by a partial imputation system of corporation tax, which was introduced in 1973. Payments of advance corporation tax (ACT) charged on dividend distributions can normally be offset against the firm's corporation tax liability. However, for...

This paper considers the relationship between two general neutral business tax structures, which we label the Ѧirm tax' and the ѳhareholder taxҮ The well-known R-based and S-based cash flow taxes, analysed by Meade (1978), are special cases of these two taxes. We demonstrate the...

In this paper we consider estimation of the autoregressive error components model. When the autoregressive parameter is moderately large and the number of time series observations is moderately small, the usual Generalised Methods of Moments (GMM) estimator obtained after first differencing has...

This paper investigates whether the impact of financing constraints on company investment spending differs between firms in Belgium, France, Germany and the UK. Many previous studies have found that investment spending displays "excess sensitivity to cash flow" for individual countries, and...

This paper examines the impact of fiscal incentives on the level of R&D investment. An econometric model of R&D investment is estimated using a new panel of data on tax changes and R&D spending in nine OECD countries over a nineteen year period (1979-1997). We find evidence that tax incentives...

This paper describes the evolution of the tax treatment of investment in R&D in Australia, Canada, France, Great Britain, Germany, Italy, Japan and the USA between 1979 and 1994. Estimates of the cost of R&D capital are provided and the methodology used is contrasted with other ones used in the...

Much of the dramatic change in skill and wage structure observed in recent years in the United States is believed to stem from the impact of new technology. This paper compares the changing skill structure of wage bills and employment in the United States with six other advanced developed...