ECONOMIC CONSEQUENCES OF TAX REFORM ON AGRICULTURAL INVESTMENT

Michael LeBlanc, Ron Durst, James Hrubovcak and Roger Conway

No 270122, 1987 Annual Meeting, August 2-5, East Lansing, Michigan from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: The investment effects of five major tax proposals and the Tax Reform Act of 1986 1 are examined by combining an econometrically estimated investment function with the cost of capital associated with each proposal. All the tax proposals increase the cost of capital and amplify current decreases in agricultural capital disinvestment. The proposals are bounded above by the Kemp-Kasten plan which reduces net investment by about $190 million and below by the House plan which accounts for yearly declines in excess of $320 million. In addition, the repeal of the investment tax credit is responsible for about 98 percent of the decline in net investment under the Tax Reform Act of 1986.

Keywords: Agricultural and Food Policy; Agricultural Finance; Political Economy (search for similar items in EconPapers)
Pages: 18
Date: 1987-08-02
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/270122/files/aaea-1987-132.pdf (application/pdf)
https://ageconsearch.umn.edu/record/270122/files/a ... 2.pdf?subformat=pdfa (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea87:270122

DOI: 10.22004/ag.econ.270122

Access Statistics for this paper

More papers in 1987 Annual Meeting, August 2-5, East Lansing, Michigan from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)
Bibliographic data for series maintained by AgEcon Search ().