The effect of inflation on growth investments: A note

Clovis de Faro

Estudios Económicos, 1998, vol. 13, issue 1, 81-91

Abstract: Motivated by the pioneering work of Brenner and Venetia (1983), henceforth designated as BV, a previous note that focused attention on the effect of taxation on the optimal duration of investments in a non inflationary environment (de Faro, 1996), the present note is aimed at investigating the effects of inflation on the optimal duration of investments. Specifically, considering the no reinvestment case only, our objective is to include in the analysis both a numerical illustration of the peculiar results of BV as well as indexation procedures that have been used in some high inflation economies.

Date: 1998
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Persistent link: https://EconPapers.repec.org/RePEc:emx:esteco:v:13:y:1998:i:1:p:81-91

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