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The Micro Effects of Inflation on Corporate Taxation and Profitability: Some Empirical Evidence for Seventeen Industry Groups

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  • Z. P. MATOLCSY

Abstract

This study provides some estimates for the following micro effects of inflation: the depreciation effect; the inventory effect; and the net monetary effect. The results indicate that these distributive effects of inflation lead to non‐trivial reallocations of wealth between the different sectors of the economy. Furthermore, the study identifies those industry groups which have benefited from these effects and those industry groups which have ‘lost out’ due to these effects.

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  • Z. P. Matolcsy, 1984. "The Micro Effects of Inflation on Corporate Taxation and Profitability: Some Empirical Evidence for Seventeen Industry Groups," The Economic Record, The Economic Society of Australia, vol. 60(4), pages 356-365, December.
    • Handle: RePEc:bla:ecorec:v:60:y:1984:i:4:p:356-365
    DOI: 10.1111/j.1475-4932.1984.tb00871.x
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    References listed on IDEAS

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    1. Alchian, Armen A & Klein, Benjamin, 1973. "On a Correct Measure of Inflation," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 5(1), pages 173-191, Part I Fe.
    2. Bryan Haig, 1982. "Inflation and Profits — The SVA and Depreciation Adjustments in the National Accounts," The Economic Record, The Economic Society of Australia, vol. 58(4), pages 357-366, December.
    3. Hong, Hai, 1977. "Inflation and the Market Value of the Firm: Theory and Tests," Journal of Finance, American Finance Association, vol. 32(4), pages 1031-1048, September.
    4. Peasnell, Kv & Skerratt, Lcl, 1977. "How Well Does A Single Index Represent 19 Sandilands Plant And Machinery Indexes," Journal of Accounting Research, Wiley Blackwell, vol. 15(1), pages 108-119.
    5. Lintner, John, 1975. "Inflation and Security Returns," Journal of Finance, American Finance Association, vol. 30(2), pages 259-280, May.
    6. Haig, Bryan, 1982. "Inflation and Profits-The SVA and Depreciation Adjustments in the National Accounts," The Economic Record, The Economic Society of Australia, vol. 58(163), pages 357-366, December.
    7. Motley, Brian, 1969. "Inflation and Common Stock Values: Comment," Journal of Finance, American Finance Association, vol. 24(3), pages 530-535, June.
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    Cited by:

    1. Keith K.W. Chan & Toan M. Pham, 1990. "Models of Inflation Forecasts: Some Australian Evidence," Australian Journal of Management, Australian School of Business, vol. 15(1), pages 89-105, June.

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