Taxation and the Size and Composition of the Capital Stock: An Asset Price Approach / Lawrence H. Summers.

Format:

Book

Author/Creator:

Summers, Lawrence H.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w1709.

NBER working paper series no. w1709

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Taxation and the Size and Composition of the Capital Stock

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1985.

Summary:

This paper develops an asset price approach to the analysis of capital taxation. The costs of adjusting capital stocks cause tax changes to have important impacts on the valuation of existing capital. The recapitalizations associated with tax reforms represent an important aspect of their incidence. These effects are studied within the context of an empirically calibrated general equilibrium model. The model extends previous work by explicitly treating the process of adjustment following tax reforms, treating in detail the relationship between tax rules and interest rates and examining the differential incidence effects of corporate tax reductions and investment incentives.

Notes:

Print version record

September 1985.