Work

Taxation, Corporate Financial Policy and the Cost of Capital

Year: 1982

Type: report

Abstract: The cost of capital plays an important role in the allocation of resources among competing uses in a decentralized market system.The purpose of this paper is to organize and present what is known and what is hypothesized about the effects of taxation on the incentive to invest, via the cost of capital, taking full account of important issues that arise independently frpm the ques-- tion of taxation.Included in the analysis is a discussion of empirical findings about the interaction of inflation and taxation in influencing the incentive to invest, and a treatment of taxation and uncertainty.

Source: National Bureau of Economic Research

DOI: 10.3386/w1026

Author: Alan Auerbach

Institutions: National Bureau of Economic Research, Ifo Institute for Economic Research, Harvard University, University of California, Berkeley

Language: English

Topic: Corporate Taxation and Avoidance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W1479976690

Cites: 66

Cited by: 370

Related to: 10