This chapter reviews the theory and evidence regarding the impact of taxation on corporate
financial policy. Starting from a basic characterization of the classical corporate income tax …

This paper reviews the state of discretionary fiscal policy. Among its findings are:(1) In recent
years, US discretionary fiscal policy appears to have become more active in response to …

Most empirical models of investment rely on the assumption that firms are able to respond to
prices set in centralized securities markets (through the" cost of capital" or" q"). An alternative …

This study estimates the investment, financing, and payout responses to variation in a firm's
effective corporate income tax rate in the United States. I exploit quasi-experimental …

Business practices in Japan inspire fierce and even acrimonious debate, especially when
they are compared to American practices. This book attempts to explain the remarkable …

A central claim of both Marxist and neoclassical political theory is that under capitalism all
governments must respect and protect the essential claims of those who own the productive …

In this survey, we review research on tax policy and business investment with four
objectives. First, we use a simple prototypical dynamic neoclassical investment model to …

We use firm-level panel data to explore the extent to which fixed investment responds to tax
reforms in 14 OECD countries. Previous studies have often found that investment does not …

We derive the quantitative implications of growth theory for US corporate equity plus net debt
over the period 1960–2001. There were large secular movements in corporate equity values …

THE TAX REFORM ACT of 1986 (TRA86) constituted the most sweeping change in the US
federal income tax since it became a tax that applied to most citizens during World War II. Its …