This paper presents a comprehensive treatment of the cost-of-capital approach for analyzing the economic impact of tax policy. This approach has provided an intellectual impetus for reforms of capital income taxation in the United States and around the world. The most dramatic example is the Tax...

This paper presents a comprehensive treatment of the cost-of-capital approach for analyzing the economic impact of tax policy. This approach has provided an intellectual impetus for reforms of capital income taxation in the United States and around the world. The most dramatic example is the Tax...

In this chapter we present a dynamic general equilibrium methodology for evaluating alternative proposals for tax reform. We illustrate this methodology by comparing alternative proposals that would remove barriers to efficient allocation of capital and labor inputs. These proposals are based on...