Do Temporary Business Tax Cuts Matter A General Equilibrium Analysis is popular PDF and ePub book, written by William Gbohoui in 2019-02-15, it is a fantastic choice for those who relish reading online the Business & Economics genre. Let's immerse ourselves in this engaging Business & Economics book by exploring the summary and details provided below. Remember, Do Temporary Business Tax Cuts Matter A General Equilibrium Analysis can be Read Online from any device for your convenience.
Do Temporary Business Tax Cuts Matter A General Equilibrium Analysis Book PDF Summary
This paper develops a dynamic general equilibrium model to assess the effects of temporary business tax cuts. First, the analysis extends the Ricardian equivalence result to an environment with production and establishes that a temporary tax cut financed by a future tax-increase has no real effect if the tax is lump-sum and capital markets are perfect. Second, it shows that in the presence of financing frictions which raise the cost of investment, the policy temporarily relaxes the financing constraint thereby reducing the marginal cost of investment. This direct effect implies positive marginal propensities to invest out of tax cuts. Third, when the tax is distortionary, the expectation of high future tax rates reduces the expected marginal return on investment mitigating the direct stimulative effects.
Detail Book of Do Temporary Business Tax Cuts Matter A General Equilibrium Analysis PDF
- Author : William Gbohoui
- Release : 15 February 2019
- Publisher : International Monetary Fund
- ISBN : 9781484393895
- Genre : Business & Economics
- Total Page : 39 pages
- Language : English
- PDF File Size : 21,6 Mb
If you're still pondering over how to secure a PDF or EPUB version of the book Do Temporary Business Tax Cuts Matter A General Equilibrium Analysis by William Gbohoui, don't worry! All you have to do is click the 'Get Book' buttons below to kick off your Download or Read Online journey. Just a friendly reminder: we don't upload or host the files ourselves.
