This paper provides an effective tax rate measure that is valid in the presence of adjustment costs and anticipated tax changes and a measure of the impact of tax changes on market value that may be decomposed into the effects on discounted pure profits and normal returns to capital. Changes in...

This study uses tax reform data for U.S. nonfinancial corporations for the period 1971-82 to estimate the importance of restrictions on the ability of firms to use tax credits and to obtain refunds for tax losses. The authors' results suggest that the incidence of such unused tax benefits...

Prevalent thinking about liquidity traps suggests that the perfect substitutability of money and bonds at a zero short-term nominal interest rate renders open-market operations ineffective for achieving macroeconomic stabilization goals. We show that even were this the case, there remains a...

An alternative to deficit accounting is proposed for understanding the government's treatment of current and future generations. The alternative, called generational accounting, is based on the government's intertemporal budget constraint. Generational accounting is used to describe the...

This paper presents a new approach to the taxation of capital gains that eliminates the deferral advantage of realization-based systems, along with the lock-in effect and tax-arbitrage possibilities associated with this deferral advantage. The new method still taxes capital gains only upon...