Taxation, Corporate Financial Policy and the Cost of Capital

Alan Auerbach

No 1026, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The cost of capital plays an important role in the allocation of resources among competing uses in a decentralized market system. The purpose of this paper is to organize and present what is known and what is hypothesized about the effects of taxation on the incentive to invest, via the cost of capital,taking full account of important issues that arise independently from the question of taxation. Included in the analysis is a discussion of empirical findings about the interaction of inflation and taxation in influencing the incentive to invest, and a treatment of taxation and uncertainty.

Date: 1982-11
Note: PE
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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

Downloads: (external link)
http://www.nber.org/papers/w1026.pdf (application/pdf)

Related works:
Journal Article: Taxation, Corporate Financial Policy and the Cost of Capital (1983)
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:nbr:nberwo:1026

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w1026

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().