The Interaction of Corporate and Government Financing in General Equilibrium

Simon Benninga and Eli Talmor

Rodney L. White Center for Financial Research Working Papers from Wharton School Rodney L. White Center for Financial Research

Abstract: This paper develops a general equilibrium model for analyzing the interaction of corporate financial and production decisions, consumers’ behavior and government financing. We use the model to investigate how changes in income tax rates and government debt policy affect production, interest rates, and consumer welfare. We also show how changes in the different tax rates affect other tax rates in general equilibrium.

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Persistent link: https://EconPapers.repec.org/RePEc:fth:pennfi:28-86

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