The Micro Effects of Inflation on Corporate Taxation and Profitability: Some Empirical Evidence for Seventeen Industry Groups

Z. P. Matolcsy

The Economic Record, 1984, vol. 60, issue 4, 356-365

Abstract: This study provides some estimates for the following micro effects of inflation: the depreciation effect; the inventory effect; and the net monetary effect. The results indicate that these distributive effects of inflation lead to non‐trivial reallocations of wealth between the different sectors of the economy. Furthermore, the study identifies those industry groups which have benefited from these effects and those industry groups which have ‘lost out’ due to these effects.

Date: 1984
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