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The Interaction of Corporate and Government Financing in General Equilibrium


  • Benninga, Simon
  • Talmor, Eli


This article develops a general equilibrium model for analyzing the in teraction of corporate financial and production decisions, consumers' behavior, and government financing. The authors use the model to inv estigate how changes in income tax rates and government debt policy a ffect production, interest rates, and consumer welfare. They also sho w how changes in the different tax rates affect other tax rates in ge neral equilibrium. Copyright 1988 by the University of Chicago.

Suggested Citation

  • Benninga, Simon & Talmor, Eli, 1988. "The Interaction of Corporate and Government Financing in General Equilibrium," The Journal of Business, University of Chicago Press, vol. 61(2), pages 233-258, April.
  • Handle: RePEc:ucp:jnlbus:v:61:y:1988:i:2:p:233-58
    DOI: 10.1086/296430

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    Cited by:

    1. de Bondt, Gabe, 2002. "Euro area corporate debt securities market: first empirical evidence," Working Paper Series 0164, European Central Bank.
    2. John Graham & Mark T. Leary & Michael R. Roberts, 2014. "How Does Government Borrowing Affect Corporate Financing and Investment?," NBER Working Papers 20581, National Bureau of Economic Research, Inc.
    3. de Bondt, Gabe, 2002. "Euro area corporate debt securities market: first empirical evidence," Working Paper Series 164, European Central Bank.
    4. Snehal S Herwadkar, 2017. "Corporate leverage in EMEs: did the global financial crisis change the determinants?," BIS Working Papers 681, Bank for International Settlements.

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