Abstract
The author shows that, within the strict confines of the neoclassical theory of investment, investment allowances and tax credits on gross investment over and above regular depreciation are efficient investment incentives in the sense that they do not distort the allocation of capital over investments of differing durabilities. Initial allowances, tax credits on net investments, tax credits on gross investment which are set against depreciation, and interest subsidies all distort investment decisions in favor of longer-lived investments. Accelerated depreciation schemes are generally distortionary as well, with the nature of the distortion depending upon how the tax depreciation rate is defined.
Citation Formats
Boadway, R.
Investment incentives, corporate taxation, and efficiency in the allocation of capital.
United Kingdom: N. p.,
1978.
Web.
Boadway, R.
Investment incentives, corporate taxation, and efficiency in the allocation of capital.
United Kingdom.
Boadway, R.
1978.
"Investment incentives, corporate taxation, and efficiency in the allocation of capital."
United Kingdom.
@misc{etde_6438214,
title = {Investment incentives, corporate taxation, and efficiency in the allocation of capital}
author = {Boadway, R}
abstractNote = {The author shows that, within the strict confines of the neoclassical theory of investment, investment allowances and tax credits on gross investment over and above regular depreciation are efficient investment incentives in the sense that they do not distort the allocation of capital over investments of differing durabilities. Initial allowances, tax credits on net investments, tax credits on gross investment which are set against depreciation, and interest subsidies all distort investment decisions in favor of longer-lived investments. Accelerated depreciation schemes are generally distortionary as well, with the nature of the distortion depending upon how the tax depreciation rate is defined.}
journal = []
volume = {88:351}
journal type = {AC}
place = {United Kingdom}
year = {1978}
month = {Sep}
}
title = {Investment incentives, corporate taxation, and efficiency in the allocation of capital}
author = {Boadway, R}
abstractNote = {The author shows that, within the strict confines of the neoclassical theory of investment, investment allowances and tax credits on gross investment over and above regular depreciation are efficient investment incentives in the sense that they do not distort the allocation of capital over investments of differing durabilities. Initial allowances, tax credits on net investments, tax credits on gross investment which are set against depreciation, and interest subsidies all distort investment decisions in favor of longer-lived investments. Accelerated depreciation schemes are generally distortionary as well, with the nature of the distortion depending upon how the tax depreciation rate is defined.}
journal = []
volume = {88:351}
journal type = {AC}
place = {United Kingdom}
year = {1978}
month = {Sep}
}