An Analysis of the Effects of Investment Incentives on Investment Behaviour in the British Economy
Bibliographic Data
| ID | 9724896 |
|---|---|
| Authors | Rina Agarwala (0000-0002-8631-9295), G C Goodson |
| Year | 1969 |
| Volume | 36 |
| Issue | 144 |
| Pages | 377 |
| Publication date | 1969-11-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Economica (JOURNAL) |
| Journal identifiers | ISSN: 0013-0427 • E-ISSN: 1468-0335 |
| Publisher | JSTOR (PUBLISHER) |
| DOI | 10.2307/2552377 |
| OpenAlex | W1986813617 |
| Language | EN |
| Citations received | 4 |
| References cited | 1 |
In the post-war period in Great Britain, a number of fiscal devices have been tried for regulating private investment. In this connection, depreciation allowances have been changed on a number of occasions, and more recently investment grants and changes in corporation tax have been introduced. The argument for these changes is that they will affect the profitability and/or liquidity of business firms and may thus affect their rate of investment. This logic seems broadly plausible, but few attempts seem to have been made to test the underlying hypothesis empirically or to estimate the magnitude of the effects of these policies on investment. In this paper, we make such an attempt. In Section I we refer to earlier studies on this problem and formulate our hypothesis of investment behaviour. In Section II we obtain the statistical estimates required for verification of our hypothesis and examine its validity in the light of experience over the period 1958-66. In Section III we deduce the implications of our hypothesis and present statistical estimates on the central question as to the effect of incentives on investment. In Section IV we round off our study with some concluding remarks
Argument (complex analysis) · Capital formation · Corporation · Depreciation (economics) · Economics · Economy · Incentive · Investment (military) · Macroeconomics · Microeconomics · Monetary economics · Profit (economics) · Profitability index · Finance · Fiscal Policies and Political Economy · Fiscal Policy and Economic Growth · Housing Market and Economics
| Unique citing works | 4 |
|---|---|
| Citations per year | 0,07 |
| Citation span | 1972 - 2005 (34) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 3 |