In this survey, we review research on tax policy and business investment with four objectives. First, we use a simple … prototypical dynamic neoclassical investment model to derive and explain effects of taxation on business investment in the long run … arguments for and against using tax policy to influence the level or timing of investment. While there is a consensus about the …

We survey recent microeconometric research on investment and employment that has used panel data on individual firms or … theory of the demand for capital and labour, on which most of the econometric models of investment and employment that we … of adjustment, which have played a prominent role especially in the microeconometric literature on investment. With …