Tax-Adjusted q Model with Intangible Assets: Theory and Evidence from Temporary Investment Tax Incentives.

We propose a tax-adjusted q model with physical and intangible assets and estimate the effect of bonus depreciation in the United States in the early 2000s. We find that investment responds moderately to tax incentives, but allowing for heterogeneity reveals that intangible-intensive firms respond m...

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Publicado en:Southern Economic Journal Vol. 83; no. 4; pp. 972 - 993
Autores principales: Chen, Sophia, Dauchy, Estelle P.
Formato: Artículo
Publicado: Wiley-Blackwell Apr2017
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        10.1002/soej.12203
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        atl: Tax-Adjusted q Model with Intangible Assets: Theory and Evidence from Temporary Investment Tax Incentives.
      aug:
        au:
          Chen, Sophia
          Dauchy, Estelle P.
        affil:
          International Monetary Fund, 700 19th St NW, Washington, DC 20431, USA
          Campaign for Tobacco-Free Kids, 1400 I (Eye) Street NW, Suite 1200, Washington, DC 20005, USA
      su:
        United States
        Taxation
        Property
        Tax incentives
        Intangible property
      sug:
        subj:
          Taxation
          Property
          United States
          Lessors of Nonfinancial Intangible Assets (except Copyrighted Works)
          Public Finance Activities
          Tax incentives
          Intangible property
      keyword:
        E01
        G31
        H25
        E01
        G31
        H25
      ab: We propose a tax-adjusted q model with physical and intangible assets and estimate the effect of bonus depreciation in the United States in the early 2000s. We find that investment responds moderately to tax incentives, but allowing for heterogeneity reveals that intangible-intensive firms respond more than physical-intensive firms and that this difference is accentuated among large firms. Accounting for intangible assets increases the estimated total investment response from 3.7 to 14.3% of aggregate investment in 2000 among the largest 500 firms. Our results suggest that understanding the behavior of large and intangible-intensive firms matters for investment policy.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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