Tax policy, capital use, and investment incentives

Schworm, William

doi:10.1016/0047-2727(79)90012-4

Cited by 16 publications

(10 citation statements)

References 16 publications

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“…See Blanchard and Giavazzi (2004) and Estache (2004) for a more general discussion on the importance of public capital maintenance expenditures in the presence of …scal rules. 20 See the early contributions by Nickell (1978, chapter 7), Schworm (1979) and the more recent ones by, among others, Boucekkine and Ruiz-Tamarit (2003) at the …rm level, in Licandro et al (2001) and Aznar-Marquez and Ruiz-Tamarit (2004) in growth models.…”

Section: Discussionmentioning

confidence: 99%

Public capital maintenance and congestion: Long-run growth and fiscal policies

Dioikitopoulos

Kalyvitis

2008

Journal of Economic Dynamics and Control

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In this paper we study an endogenous growth model, in which public maintenance expenditures a¤ect the depreciation rate of public capital and the latter is subject to congestion. We …nd that economies with low congestion in public infrastructure will require a threshold level of public capital maintenance for ongoing growth. We also examine the …scal implications of public capital maintenance policies and we …nd that the composition of public capital expenditures under congestion is a crucial determinant of optimal and growth-maximizing …scal policies. The government can a¤ect the return of public capital by re-allocating public expenditures between 'new' public investment and maintenance and hence avoid excessive taxation that is required under increasing congestion.JEL classi…cation: O41, H54, E62.

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Section: Discussionmentioning

confidence: 99%

Public capital maintenance and congestion: Long-run growth and fiscal policies

Dioikitopoulos

Kalyvitis

2008

Journal of Economic Dynamics and Control

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“…Several studies have investigated theoretically a setup for the relationship between endogenously determined depreciation and the optimal maintenance level, under which the central decision of the firm involves the allocation of expenditures between “new” investment and maintenance, in order to maximize the discounted value of future income flows by affecting the capital accumulation process either directly or via the depreciation rate. See, among others, , , , and for early contributions in this literature. In turn, there are some empirical studies at the sectoral level that have confirmed that capital deterioration is endogenous and, in particular, associated with maintenance expenditure.…”

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confidence: 99%

“…Early contributions in the literature can be found in , chap. 7), , and, more recently, at the firm level; and in growth models; and and in the context of real business cycle models.…”

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confidence: 99%

Estimating the Euler Equation for Aggregate Investment with Endogenous Capital Depreciation

Angelopoulou¹,

Kalyvitis

2012

Southern Economic Journal

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This article looks at the empirical consequences of introducing endogenous capital depreciation in the standard neoclassical model with quadratic adjustment costs. To this end, we formulate an empirical specification that accommodates capital maintenance and utilization in the Euler equations for aggregate investment. The empirical estimates with data from the Canadian Survey on Capital and Repair Expenditures show that, in contrast to the existing literature, the performance of the Euler equations is improved when we account for the impact of variable capital depreciation.

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“…The management, however, may try to postpone the replacement by applying preventive maintenance, which will slow down the rate of decline of the resale value. Schworm (1979) surveys the machine replacement problem subject to corporate taxation. Obviously, the cost of owning and operating capital depends on productíon decisions that can be influenced by tax policy.…”

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confidence: 99%

Dynamic Firm and Investor Behaviour under Progressive Personal Taxation

Schijndel¹

1988

Lecture Notes in Economics and Mathematical Systems

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Proefschrift ter verkrijging van de graad van doctor aan de Katholieke 1Tniversiteit Rrabant, op gezag van de rector magnificus, prof. dr. R.A. Some of the results have already been published in journals and collections. In this way some of the chapters draw on already existing papers.The chapters two and three survey for convenience of the reader some relevant elements of the theory on corporate finance and the theory on the dynamics of the firm and present the information necessary to understand the origin and topic of the book. Many readers may thus be familiar with the literature on which these chapters are hased.Chapter four contains among others a main results of the paper hy Van Schijndel (1985) and parts of the working paper by Van Schijndel and Verheyen (1986), which will be submitted for publication.

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Tax policy, capital use, and investment incentives

Cited by 16 publications

References 16 publications

Public capital maintenance and congestion: Long-run growth and fiscal policies

Public capital maintenance and congestion: Long-run growth and fiscal policies

Estimating the Euler Equation for Aggregate Investment with Endogenous Capital Depreciation

Dynamic Firm and Investor Behaviour under Progressive Personal Taxation

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