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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
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  1. Darrell Duffie & William Zame, 1988. "The Consumption-Based Capital Asset Pricing Model," Discussion Papers 88-10, University of Copenhagen. Department of Economics.
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  13. Gordon, Roger H, 1985. "Taxation of Corporate Capital Income: Tax Revenues versus Tax Distortions," The Quarterly Journal of Economics, MIT Press, vol. 100(1), pages 1-27, February.
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