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Taxation, Technology, and the User Cost of Capital - 1st Edition - ISBN: 9780444874900, 9781483296241

Taxation, Technology, and the User Cost of Capital, Volume 182

1st Edition

Author: E. Biørn
eBook ISBN: 9781483296241
Imprint: North Holland
Published Date: 1st July 1989
Page Count: 332
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Table of Contents

Introduction. Basic Investment Criteria and the Cost of Capital. Basic Capital Concepts: Gross and Net Capital. The User Cost of Capital under Neo-Classical Technology. Part 1. No Taxes. The Corporate Tax System. The User Cost of Capital under Neo-Classical Technology. Part 2. Taxes Included. The User Cost of Capital under a Putty-Clay Technology. Part 1: No Taxes. The User Cost of Capital under a Putty-Clay Technology. Part 2: Taxes Included. Neutrality and Departure from Neutrality in Corporate Taxation. User Costs and Neutrality Indicators for Norwegian Manufacturing. Price - Quantity Relations: Empirical Illustrations for Machinery in Norwegian Manufacturing. Concluding Remarks. Appendixes. List of Symbols and Notational Conventions. References. Indexes.


The definition and measurement of the cost of using real capital as an input in production has been much discussed and approached in several ways in earlier literature. This present study attempts to give a unified treatment of the cost of capital services, with emphasis on its relation to the corporate tax system on the one hand, and to the production technology of the firm on the other. It provides a thorough discussion of capital as a factor of production, relating the measurement of the price of capital services to the measurement of capital stock.

A parallel treatment of capital and its service price with a neo-classical technology and with a putty-clay technology is presented. The book also discusses and unifies different concepts of neutrality of income taxation presented in the public finance literature. Illustrations based on data for the manufacturing sector of the Norwegian economy are given, relating partly to the actual tax system and partly to more or less hypothetical tax reforms. The study is intended to serve as a reference for researchers in econometric model building, corporate investment behaviour, tax analysis, and national accounting.


No. of pages:
© North Holland 1989
1st July 1989
North Holland
eBook ISBN:


@from:Herbert G. Hunt III @qu:...this well-written book makes a significant contribution to the literature in several areas and should be of particular value to those with an interest in macroeconomic model building and tax and corporate financial policy. @source:The Accounting Review

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About the Author

E. Biørn