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The Johansson-Samuelson Theorem in General Equilibrium: A Rebuttal

Listed author(s):
  • Francesco Menoncin
  • Paolo Panteghini

The well-known Johansson-Samuelson Theorem proves that, in partial equilibrium, comprehensive income taxation with a uniform tax rate is neutral in terms of investment decisions, if fiscal depreciation allowances coincide with economic depreciation. In this article we show that this result does not hold in general equilibrium, unless fairly restrictive conditions are met.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2008/wp-cesifo-2008-07/cesifo1_wp2352.pdf
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 2352.

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Date of creation: 2008
Handle: RePEc:ces:ceswps:_2352
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