We develop a growth model which distinguishes between capital creation that takes place as a result of conventional investment and accumulation which occurs when temporarily idle assets are reactivated.

The Review of Business Taxation chaired by Mr John Ralph has suggested sweeping changes to business taxation in Australia. In particular it has been proposed that accelerated depreciation provisions be removed to finance a reduction in the company tax rate. If some degree of accelerated...

The proposition that the Resource Rent Tax can have a neutral effect on the level of mining investment has re-surface in recent literature. This paper shows that the proposition is essentially false.

A major empirical interest is whether a permanent change in economic fundamentals produces a growth effect. However, a direct time series analysis of this hypothesis may not always be feasible due to a lack of such events. This paper explains why a test regarding the long run effect of a...

This paper examines how the Australian full imputation and capital gains tax provisions can combine to influence incentives to invest by affecting the cost of capital. Costs of capital for both unincorporated enterprises and widely-held, Australian-owned companies are examined under idealised...