Effective Tax Rates and the User Cost of Capital when Interest Rates are Low

Creedy, John; Gemmell, Norman

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dc.contributor.author	Creedy, John
dc.contributor.author	Gemmell, Norman
dc.date.accessioned	2022-07-11T21:36:24Z
dc.date.accessioned	2017-12-06T21:40:12Z
dc.date.available	2022-07-11T21:36:24Z
dc.date.available	2017-12-06T21:40:12Z
dc.date.copyright	2017
dc.date.issued	2017
dc.identifier.uri	https://ir.wgtn.ac.nz/handle/123456789/20292
dc.description.abstract	Interest rates are a key component of both user cost and effective tax rate measures of company taxation, and each is regularly used in empirical tests of tax impacts on investment. However, it is shown that when interest rates are low the two measures are not monotonically related. Using a simulated sample of observations, this feature is found to generate perverse estimates of the effects of taxation on the investment plans of firms.	en_NZ
dc.format	pdf	en_NZ
dc.language.iso	en_NZ
dc.publisher	Te Herenga Waka—Victoria University of Wellington	en_NZ
dc.relation.ispartofseries	Working Papers in Public Finance ; 02/2017	en_NZ
dc.subject	Interest rates	en_NZ
dc.subject	Company taxation	en_NZ
dc.subject	Business taxes	en_NZ
dc.subject	Investment	en_NZ
dc.title	Effective Tax Rates and the User Cost of Capital when Interest Rates are Low	en_NZ
dc.type	Text	en_NZ
vuwschema.contributor.unit	School of Accounting and Commercial Law	en_NZ
vuwschema.subject.anzsrcfor	140399 Econometrics not elsewhere classified	en_NZ
vuwschema.type.vuw	Working or Occasional Paper	en_NZ
vuwschema.subject.anzsrcforV2	380299 Econometrics not elsewhere classified	en_NZ
dc.rights.rightsholder	www.victoria.ac.nz/sacl/about/cpf	en_NZ