Alvarez JR, Luis; Kanniainen, Vesa; Södersten, Jan - Nationalekonomiska Institutionen, Uppsala Universitet - 2000
The paper shows that a corporate tax policy which is thought to be neutral may have significant incentive effects. This … result is established in a model with tax advantage to debt and expectations about a forthcoming tax reform. Investment spurt … effects are established and compared to those of a firm with equity finance. A tax-cut cum base-broadening tax reform which …