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A Note on Private Corporate Investment and Effective Tax Rates

Author

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  • Raghbendra Jha

    (Queen's University)

  • Nisha Wadhwa

    (University of Delhi)

Abstract

This article examines the controversy (concerning the relationship between private Abstract corporate investment and effective tax rates) between Feldstein (1982, 1987) and Chirinko (1987), with Indian data. The evidence supports the net rate of return model proposed by Feldstein but does not support the refinements to this model proposed by Chirinko .

Suggested Citation

  • Raghbendra Jha & Nisha Wadhwa, 1990. "A Note on Private Corporate Investment and Effective Tax Rates," Public Finance Review, , vol. 18(4), pages 454-464, October.
    • Handle: RePEc:sae:pubfin:v:18:y:1990:i:4:p:454-464
    DOI: 10.1177/109114219001800405
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    References listed on IDEAS

    as
    1. Martin Feldstein, 1983. "Inflation, Tax Rules, and Investment: Some Econometric Evidence," NBER Chapters, in: Inflation, Tax Rules, and Capital Formation, pages 243-286, National Bureau of Economic Research, Inc.
    2. Feldstein, Martin & Dicks-Mireaux, Louis & Poterba, James, 1983. "The effective tax rate and the pretax rate of return," Journal of Public Economics, Elsevier, vol. 21(2), pages 129-158, July.
    3. Coen, Robert M, 1969. "Tax Policy and Investment Behavior: Comment," American Economic Review, American Economic Association, vol. 59(3), pages 370-379, June.
    4. Chirinko, Robert S., 1987. "The ineffectiveness of effective tax rates on business investment : A critique of Feldstein's Fisher-Schultz lecture," Journal of Public Economics, Elsevier, vol. 32(3), pages 369-387, April.
    Full references (including those not matched with items on IDEAS)

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