for investment in equipment and find that the responsiveness of Swedish firms to the user cost is quite similar to that … impact of the reform on investment is likely to have been minor and had little to do with the contemporaneous sharp drop in … investment …

In models with irreversible investment, increasing uncertainty about prices has been shown to increase the required … rate of return (hurdle rate) and delay investment (e.g., Pindyck, 1988). One serious form of uncertainty faced by firms, a … past work that tax policy uncertainty increases the expected hurdle price ratio and delays investment. This is because tax …

The Tax Reform Act of 1986 was expected to cause an overall decline in business fixed investment and a shift in the … composition of investment away from machinery and equipment, which previously had received an investment tax credit. Yet neither … investment relative to GNP nor equipment investment relative to total investment declined during the period 1987-89. This paper …

This paper derives and estimates models of nonresidential investment behavior in which current and future tax … postwar U.S. investment behavior, particularly for investment in machinery and equipment. In addition, the paper develops a … method for assessing the impact of tax policy on the volatility of investment when such policy is endogenous. Illustrative …