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The Johansson-Samuelson Theorem in General Equilibrium: A Rebuttal

  • Francesco Menoncin
  • Paolo M. Panteghini

The well-known Johansson-Samuelson theorem proves that, in partial equilibrium, comprehensive income taxation with a uniform tax rate does not affect asset values if tax depreciation allowances coincide with economic depreciation. In this article, we show that this result fails to hold in general equilibrium, unless fairly restrictive conditions are met.

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Article provided by Mohr Siebeck, Tübingen in its journal FinanzArchiv.

Volume (Year): 69 (2013)
Issue (Month): 1 (March)
Pages: 57-71

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Handle: RePEc:mhr:finarc:urn:sici:0015-2218(201303)69:1_57:tjtige_2.0.tx_2-x
DOI: 10.1628/001522108X663479
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