Devereux, Michael (1989) Tax asymmetries, the cost of capital and investment. The Economic Journal, 99 (395). pp. 103-112.Full text not available from this repository.
A measure of the cost of capital is developed that incorporates the dynamic effects of tax changes and tax asymmetries. Estimates of the cost of capital are made using an unbalanced panel of 1987 U.K. quoted companies over the period 1971 to 1984. There is wide cross-sectional variation in the cost of capital. The measure is used in estimating an equation where this cross-sectional variation is found to be a significant determinant of the level of company investment.
|Keywords:||corporation tax; capital investments; public finance|
|Centre:||Oxford University Centre for Business Taxation|
|Date Deposited:||05 Dec 2011 15:23|
|Last Modified:||23 Oct 2015 14:06|
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