GRADUATE SHOOL OF ECONOMICS

AUTUMN 1996-1997

Tax Policy and the Cost of Capital

Instructor: Yasushi Iwamoto

Date and Time: Fridays, 2:45 - 4:15 p.m.

Room: KIER 103

Office Hour: Mondays 2:00 - 3:00 p.m.
 

1. Average effective tax rates

Feldstein, Martin S., and Lawrence H. Summers (1979), "Inflation and the Taxation of Capital Income in the Corporate Sector," National Tax Journal, Vol. 32, No. 4, pp. 445-470.

Feldstein, Martin S., and Louis Dicks-Mireaux and James Poterba (1983), "The Effective Tax Rate and the Pretax Rate of Return," Journal of Public Economics, Vol. 21, No. 2, pp. 129-158.

Feldstein, Martin and Joosong Jun (1987), "The Effects of Tax Rules on Nonresidential Fixed Investment: Some Preliminary Evidence from the 1980s," in Martin Feldstein ed., Taxation and Capital Formation, Chicago: The University of Chicago Press, pp. 101-156.

Auerbach, Alan J., and James M. Poterba (1987), "Why Have Corporate Tax Revenues Declined?" in Lawrence H. Summers ed., Tax Policy and the Economy, Vol. 1, Cambridge, MA: MIT Press, pp. 1-28.

2. The cost of capital

Jorgenson, Dale W. (1963), "Capital Theory and Investment Behavior," American Economic Review, Vol. 53, No. 2, pp. 366-378.

Hall, Robert E., and Dale W. Jorgenson (1967), "Tax Policy and Investment Behavior," American Economic Review, Vol. 57, No. 3, pp. 391-414.

Stiglitz, Joseph E. (1973), "Taxation, Corporate Financial Policy, and the Cost of Capital," Journal of Public Economics, Vol. 2, No. 1, pp. 1-34.

Auerbach, Alan J. (1983b), "Taxation, Corporate Financial Policy, and the Cost of Capital," Journal of Economic Literature, Vol. 21, No. 3, pp. 905-940.

Auerbach, Alan J. (1979), "Share Valuation and Corporate Equity Policy," Journal of Public Economics, Vol. 11, No. 3, pp. 291-305.

Auerbach, Alan J. (1984), "Taxes, Firm Financial Policy, and the Cost of Capital: An Empirical Analysis," Journal of Public Economics, Vol. 23, pp. 27-57.

Poterba, James M., and Lawrence H. Summers (1985), "The Economic Effects of Dividend Taxation," in Edward I. Altman and Marti G. Subrahmanyam (eds.), Recent Advances in Corporate Finance, Homewood, Ill.: Richard D. Irwin, pp. 227-284.

3. Marginal effective tax rates

King, Mervyn (1977), Public Policy and the Corporation, London: Chapman and Hall.

Auerbach, Alan J., and Dale W. Jorgenson (1980), "Inflation-Proof Depreciation of Assets," Harvard Business Review, Vol. 58, No. 5, pp. 113-118.

Bradford, David F., and Don Fullerton (1981), "Pitfalls in the Construction and Use of Effective Tax Rates," in Charles R. Hulten ed., Depreciation, Inflation, and the Taxation of Income from Capital, Washington, D.C.: Urban Institute Press, pp. 251-278.

Auerbach, Alan J. (1983a), "Corporate Taxation in the US," Brookings Papers on Economic Activity, No. 2, pp. 451-505.

Hulten, Charles R., and James W. Robertson (1984), "The Taxation of High Technology Industries," National Tax Journal, Vol. 37, No. 3, pp. 327-345.

Barro, Robert J., and Chaipat Sahasakul (1983), "Measuring the Average Marginal Tax Rate from the Individual Income Tax," Journal of Business, Vol. 56, No. 4, pp. 419-452.

Fullerton, Don (1984), "Which Effective Tax Rate?" National Tax Journal, Vol. 37, No. 1, pp. 23-41.

4. International comparisons of the cost of capital

King, Mervin A., and Don Fullerton eds. (1984), The Taxation of Income from Capital: A Comparative Study of the United States, the United Kingdom, Sweden, and West Germany, Chicago: The University of Chicago Press.

Jorgenson, Dale W., and Ralph Landau eds. (1993), Tax Reform and the Cost of Capital: An International Comparison, Washington, D.C.: Brookings Institution.

5. Taxation and Tobin's q

Summers, Lawrence H. (1981), "Taxation and Corporate Investment: A "q" Theory Approach," Brookings Papers on Economic Activity, No. 1, pp. 67-127.

Auerbach, Alan J. (1989), "Tax Reform and Adjustment Costs: The Impact on Investment and Market Value," International Economic Review, Vol. 30, No. 4, pp. 939-963.

Poterba, James M., and Lawrence H. Summers (1983), "Dividend Taxes, Investment, and "q"," Journal of Public Economics, Vol. 22, No. 2, pp. 135-167.

6. Tax reform act of 1986

Hulten, Charles R., and Frank C. Wykoff (1981a), "Economic Depreciation and Accelerated Depreciation: An Evaluation of the Conable-Jones 10-5-3 Proposal," National Tax Journal, Vol. 34, No. 1, pp. 45-60.

Gordon, Roger H., James R. Jr. Hines and Lawrence H. Summers (1987), "Notes on the Tax Treatment of Structures," in Martin Feldstein ed., Taxation and Capital Formation, Chicago: The University of Chicago Press, pp. 223-254.

Jorgenson, Dale W., and Kun-Young Yun (1990), "Tax Reform and US Economic Growth," Journal of Political Economy, Vol. 98, No. 5, pp. s151-s193.

Jorgenson, Dale W., and Kun-Young Yun (1991), Tax Reform and the Cost of Capital, Oxford: Clarendon Press.

Bulow, Jeremy I., and Lawrence H. Summers (1984), "The Taxation of Risky Assets," Journal of Political Economy, Vol. 92, No. 1, pp. 20-39.

Summers, Lawrence H. (1987), "Investment Incentives and the Discounting of Depreciation Allowances," in Martin Feldstein ed., Taxation and Capital Formation, Chicago: The University of Chicago Press, 295-304.

Fullerton, Don, and Yolanda K. Henderson (1989a), "A Disaggregate Equilibrium Model of Distortions among Assets, Sectors, and Industries," International Economic Review, Vol. 30, No. 2, pp. 391-414.

7. Dynamic insidence

Auerbach, Alan J., and Laurence J. Kotlikoff (1987), Dynamic Fiscal Policy, Cambrige: Cambridge University Press.

Laurence J. Kotlikoff, and Lawrence H. Summers, "Tax Insidence," in Alan J. Auerbach and Martin Feldstein eds., Handbook of Public Economics, Vol. 2, Amsterdam: North Holland, pp. 1043-1094. KYOTO UNIVERSITY