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The Investment Funds System Reconsidered


  • Södersten, Jan

    (Research Institute of Industrial Economics (IFN))


This paper studies the effects of the Swedish investment funds system on the cost of capital. It is shown that the incentive effects critically depend on which "regime" it expects to be in in the future. For quite reasonable assumptions, investment funds system releases turn out to have much less impact on the incentive to invest than conventionally assumed. Copyright 1989 by The editors of the Scandinavian Journal of Economics.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Södersten, Jan, 1986. "The Investment Funds System Reconsidered," Working Paper Series 174, Research Institute of Industrial Economics, revised Jan 1988.
  • Handle: RePEc:hhs:iuiwop:0174

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    References listed on IDEAS

    1. Araujo, A & Scheinkman, Jose A, 1977. "Smoothness, Comparative Dynamics, and the Turnpike Property," Econometrica, Econometric Society, vol. 45(3), pages 601-620, April.
    2. Sharma, Sunil, 1987. "On the existence and uniqueness of value functions in models of labor market dynamics," Economics Letters, Elsevier, vol. 24(4), pages 349-352.
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    Cited by:

    1. Davis, Steven J & Henrekson, Magnus, 1999. "Explaining National Differences in the Size and Industry Distribution of Employment," Small Business Economics, Springer, vol. 12(1), pages 59-83, February.
    2. Du Rietz, Gunnar & Johansson, Dan & Stenkula, Mikael, 2014. "Swedish Capital Income Taxation (1862–2013)," Working Paper Series 1004, Research Institute of Industrial Economics, revised 10 Sep 2015.
    3. Gunnar Forsling, 1998. "Utilization of tax allowances," Finnish Economic Papers, Finnish Economic Association, vol. 11(2), pages 96-109, Autumn.
    4. Alan J. Auerbach & Kevin Hassett & Jan Sodersten, 1995. "Taxation and Corporate Investment: The Impact of the 1991 Swedish Tax Reform," NBER Working Papers 5189, National Bureau of Economic Research, Inc.
    5. Auerbach, Alan J., 1992. "Investment policies to promote growth," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 157-184.
    6. Davis, Steven J. & Henrekson, Magnus, 1997. "Explaining National Differences in the Size and Industrial Distribution of Employment," Working Paper Series 482, Research Institute of Industrial Economics.
    7. Dufwenberg, Martin & Koskenkylä, Heikki & Södersten, Jan, 1994. "Manufacturing investment and taxation in the Nordic countries," Research Discussion Papers 8/1994, Bank of Finland.
    8. Lindstrom, Tomas, 1998. "A fuzzy design of the willingness to invest in Sweden," Journal of Economic Behavior & Organization, Elsevier, vol. 36(1), pages 1-17, July.
    9. Du Rietz, Gunnar & Johansson, Dan & Stenkula, Mikael, 2014. "A 150-year Perspective on Swedish Capital Income Taxation," HUI Working Papers 101, HUI Research.

    More about this item


    Fund allocation; tax; investment incentive;

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies


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