Presents evidence that TRA '86 did not significantly enhance foreign firms' advantage over domestic investors in the U.S. acquisition market. Minimal tax benefit is evident in post-acquisition tax returns of companies acquired by U.K. and Japanese investors.

Examines the tax-favored retirement savings behavior on non-self-employed households. Estimates that perceptions of the household's marginal tax are of limited importance in the decision to invest in tax-deferred savings instruments. Considers the effects the Tax Reform Act of 1986 has on the...