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Effects of Tax Depreciation Policy and Investment Incentives on Optimal Equipment Replacement Decisions
Author(s) -
Chisholm Anthony H.
Publication year - 1974
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1239307
Subject(s) - depreciation (economics) , incentive , economics , investment (military) , microeconomics , tax basis , tax policy , monetary economics , tax credit , public economics , state income tax , tax reform , business , gross income , profit (economics) , financial capital , politics , political science , law , capital formation
A model is developed to analyze the effects of income tax policy on the optimal timing of replacement for farm machinery. The impact of some forms of tax investment incentives on optimal replacement age was found to be substantial, while the influence of different tax depreciation methods is minimal.