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Tax Policy and Business Investment in the United States Evidence from the 1980's

This paper examines the behavior of business fixed investment in the United States in the 1980s. A background discussion of the long-term behavior of the components of business fixed investment is provided, setting the context for the empirical analysis. A standard neoclassical model of business fix...

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Bibliographic Details
Corporate Author: International Monetary Fund
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 1988
Series:IMF Working Papers
Subjects:
Private Investment
Investment
Public Finance & Taxation
Taxes
Capital Gains Tax
Intangible Capital
National Accounts
Depreciation
Taxation, Subsidies, And Revenue: General
Saving And Investment
Tax Allowances
Investments: General
Personal Finance -taxation
Macroeconomics
Tax Incentives
Capacity
Taxation
Personal Income And Other Nonbusiness Taxes And Subsidies
Capital
Income Tax
United States
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
Description
Summary:This paper examines the behavior of business fixed investment in the United States in the 1980s. A background discussion of the long-term behavior of the components of business fixed investment is provided, setting the context for the empirical analysis. A standard neoclassical model of business fixed investment is specified and estimated, with output and the cost of capital the primary explanatory variables. Simulation experiments are then conducted with a view to assessing the importance of various contributing factors--in particular tax policy--in influencing the behavior of business fixed investment during the economic expansion that began in late 1982
Physical Description:42 pages
ISBN:9781451978728

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