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Corporate Financial Policy and Taxation in a Growing Economy

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  • Feldstein, Martin
  • Sheshinski, Eytan
  • Green, Jerry

Abstract

I. A model of financial equilibrium, 412.—IL Effects of changes in the profit tax rate, 418.—III. Effects of changes in the taxation of retained earnings, 423.—IV. The nonneutrality of the corporate income tax, 427.—V. Conclusion, 430.
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  • Feldstein, Martin & Sheshinski, Eytan & Green, Jerry, 1979. "Corporate Financial Policy and Taxation in a Growing Economy," Scholarly Articles 3203643, Harvard University Department of Economics.
  • Handle: RePEc:hrv:faseco:3203643
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    References listed on IDEAS

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    1. Martin Feldstein & Lawrence Summers, 1977. "Is the Rate of Profit Falling?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 8(1), pages 211-228.
    2. Martin Feldstein & Jerry Green & Eytan Sheshinski, 1983. "Inflation and Taxes in a Growing Economy with Debt and Equity Finance," NBER Chapters, in: Inflation, Tax Rules, and Capital Formation, pages 44-60, National Bureau of Economic Research, Inc.
    3. Tobin, James, 1969. "A General Equilibrium Approach to Monetary Theory," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 1(1), pages 15-29, February.
    4. John Lintner, 1964. "Optimal Dividends and Corporate Growth under Uncertainty," The Quarterly Journal of Economics, Oxford University Press, vol. 78(1), pages 49-95.
    5. R. G. Penner, 1964. "A Note on Portfolio Selection and Taxation," Review of Economic Studies, Oxford University Press, vol. 31(1), pages 83-86.
    6. Stiglitz, Joseph E., 1973. "Taxation, corporate financial policy, and the cost of capital," Journal of Public Economics, Elsevier, vol. 2(1), pages 1-34, February.
    7. Robin Marris & Adrian Wood (ed.), 1971. "The Corporate Economy," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-01110-0, June.
    8. Robert M. Solow, 1971. "Some Implications of Alternative Criteria for the Firm," Palgrave Macmillan Books, in: Robin Marris & Adrian Wood (ed.), The Corporate Economy, chapter 10, pages 318-342, Palgrave Macmillan.
    9. Martin Feldstein, 1983. "Inflation, Income Taxes, and the Rate of Interest: A Theoretical Analysis," NBER Chapters, in: Inflation, Tax Rules, and Capital Formation, pages 28-43, National Bureau of Economic Research, Inc.
    10. Alan J. Auerbach, 1979. "Wealth Maximization and the Cost of Capital," The Quarterly Journal of Economics, Oxford University Press, vol. 93(3), pages 433-446.
    11. Myers, Stewart C., 1977. "Determinants of corporate borrowing," Journal of Financial Economics, Elsevier, vol. 5(2), pages 147-175, November.
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    Citations

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    Cited by:

    1. Martin Feldstein & David Hartman, 1979. "The Optimal Taxation of Foreign Source Investment Income," The Quarterly Journal of Economics, Oxford University Press, vol. 93(4), pages 613-629.
    2. Bernstein, Jeffrey I. & Nadiri, M. Ishaq, 1982. "Financing and Investment in Plant and Equipment and Research and Development," Working Papers 82-27, C.V. Starr Center for Applied Economics, New York University.
    3. Martin Feldstein, 1983. "Inflation, Tax Rules, and the Accumulation of Residential and Nonresidential Capital," NBER Chapters, in: Inflation, Tax Rules, and Capital Formation, pages 81-100, National Bureau of Economic Research, Inc.
    4. Srđan Đinđić, 2013. "Taxation And Forms Of Organising Business Activities," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 58(196), pages 133-156, January –.
    5. Ghada Abbas, 2006. "Gestion de la dette publique et lissage des taux d’imposition," CAE Working Papers 46, Aix-Marseille Université, CERGAM.
    6. Martin Feldstein, 1983. "Inflation, Tax Rules, and Investment: Some Econometric Evidence," NBER Chapters, in: Inflation, Tax Rules, and Capital Formation, pages 243-286, National Bureau of Economic Research, Inc.
    7. Jongmoo Jay Choi, 1988. "Debt Financing and the Cost of Capital in the Neoclassical Investment Model," The American Economist, Sage Publications, vol. 32(1), pages 19-23, March.
    8. Martin Feldstein, 1983. "Inflation, Tax Rules, and the Stock Market," NBER Chapters, in: Inflation, Tax Rules, and Capital Formation, pages 199-220, National Bureau of Economic Research, Inc.
    9. Feldstein, Martin & Green, Jerry, 1983. "Why Do Companies Pay Dividends?," American Economic Review, American Economic Association, vol. 73(1), pages 17-30, March.
    10. Uzi Yaari & Frank J. Fabozzi, 1985. "Why Ira And Keogh Plans Should Avoid Growth Stocks," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 8(3), pages 203-216, September.
    11. Serge Nadeau & Robert P. Strauss, 1991. "Tax Policies and the Real and Financial Decisions of the Firm: the Effects of the Tax Reform Act of 1986," Public Finance Review, , vol. 19(3), pages 251-292, July.
    12. Filoso, Valerio, 2010. "The Corporate Income Tax: An Entrepreneurial Perspective," MPRA Paper 42967, University Library of Munich, Germany.
    13. Alan J. Auerbach, 1979. "Wealth Maximization and the Cost of Capital," The Quarterly Journal of Economics, Oxford University Press, vol. 93(3), pages 433-446.
    14. Auerbach, Alan J., 1979. "Share valuation and corporate equity policy," Journal of Public Economics, Elsevier, vol. 11(3), pages 291-305, June.

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