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THE IMPACT OF TAX POLICY ON INVESTMENT BEHAVIOR IN THE CHEMICAL INDUSTRY, 1951‐65
Author(s) -
PITTS JAMES E.,
III WILLIAM M. WHITAKER
Publication year - 1971
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.1971.tb01593.x
Subject(s) - investment (military) , tax policy , chemical industry , manufacturing , economics , investment policy , capital investment , fixed investment , capital (architecture) , tax credit , monetary economics , tax reform , business , public economics , macroeconomics , capital formation , market economy , finance , foreign direct investment , human capital , chemistry , financial capital , law , marketing , political science , organic chemistry , politics , history , archaeology
The purpose of this study was to estimate the impact of changes in Federal tax policy on investment behavior in the chemicals and allied products industry and to examine the possibility of a differential impact of changes in tax policy on investment behavior in manufacturing industries. The impact of changes in tax policy on investment behavior in the chemical and allied products industry was estimated and compared with the impact of tax policy on investment behavior in total manufacturing found in earlier studies. The model used to estimate the impact of changes in tax policy on investment behavior in the chemicals and allied products industry was the neo‐classical model of capital accumulation as formulated initially by Dale Jorgenson. The conclusions reached were that changes in tax policy have had a measurable impact on investment behavior in the chemical and allied products industry which was greater as a percentage of gross investment than that found on total manufacturing in earlier studies.