search query: @author Jack, W. / total: 5
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| Author: | Jack, W. Viard, A. |
| Title: | Production efficiency and the design on temporary investment incentives |
| Journal: | Journal of Public Economics
1996 : JUL, VOL. 61:1, p. 87-106 |
| Index terms: | INVESTMENT INCENTIVES POLICY |
| Language: | eng |
| Abstract: | The attainment of production efficiency requires that tax incentives equalize pretax rates of return on different assets at each point of time. To achieve this objective, the conventional theory of investment tax credits (ITCs) prescribes significantly lower credit rates on shorter-lived assets. However, this result is valid only for permanent ITCs. The authors show that the credit rates for temporary ITCs should be much closer to uniform than the conventional theory prescribes. This result is robut to the presence and specification of adjustment costs. |
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