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 …

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