Auerbach (1979, 1981) has demonstrated that inflation can lead to large inter-asset distortions, with the negative … effects of higher inflation unambiguously declining with asset life. We show that this is true only if depreciation is treated … as geometric for tax purposes. When depreciation is straightline, higher inflation can have the opposite effect …

This paper presents econometric evidence on the effect of tax incentives on business Investment in the United States in … the period from 1953 through1978. The analysis emphasizes that the Interaction of inflation and existing tax rules has … contributed substantially to the decline of business investment since the late 1960's.Because the investment process is far too …

The present paper analyses the effect of the interaction between tax rules and inflation on the size and allocation of … show that, with current U.S. tax laws, an increase in the rate of inflation reduces the equilibrium amount of business … inflation lowers the real net-of-tax rate of return to the provider of business capital. In a richer model than the current one …

This paper presents econometric evidence on the effect of tax incentives on business Investment in the United States in … the period from 1953 through1978. The analysis emphasizes that the Interaction of inflation and existing tax rules has … contributed substantially to the decline of business investment since the late 1960's.Because the investment process is far too …