Inflation, Corporate Income Taxation, and the Demand for Capital Assets
Bibliographic Data
| ID | 10184183 |
|---|---|
| Authors | Richard W Kopcke (corresponding author) |
| Year | 1981 |
| Volume | 89 |
| Issue | 1 |
| Pages | 122-131 |
| Publication date | 1981-02-01 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0022-3808 • E-ISSN: 1537-534X |
| Publisher | University of Chicago Press (PUBLISHER • US) |
| DOI | 10.1086/260953 |
| OpenAlex | W1974958110 |
| Language | EN |
| References cited | 5 |
The demand for capital is not systematically related to either the level or the rate of change of "effective" income tax rates on corporate capital assets. Rising inflation during the last 10 years has raised the user cost of capital for durable assets relative to that for short-lived assets even though this inflation has raised effective tax rates for more durable capital less than for short-lived assets. Even with replacement-cost depreciation allowances, the level and pattern of investment incentives probably will continue to vary with the inflation rate
Capital (architecture · Capital formation · Consumption of fixed capital · Cost of capital · Depreciation (economics · Economics · Financial capital · Fixed capital · Incentive · Inflation (cosmology · Market economy · Microeconomics · Monetary economics · Physical capital · Economic Growth and Productivity · Economic Theory and Policy · Fiscal Policy and Economic Growth
| Highly cited | No |
|---|