Tax Reform, Interest Rates and Capital Allocation

45 Pages Posted: 5 Jul 2004 Last revised: 4 Mar 2021

See all articles by Patric H. Hendershott

Patric H. Hendershott

University of Aberdeen - Centre for Property Research; National Bureau of Economic Research (NBER)

Date Written: September 1985

Abstract

The impacts of four major tax reform proposals on the level of interest rates and the allocation of the American capital stock are derived. The four plans are Bradley-Gephardt, Kemp-Kasten, Treasury I and Treasury II. The allocation is among seven types of nonresidential capital, rental housing, and owner occupied housing held by households in five different income classes.The inflation-neutrality of the four plans as also deduced.

Suggested Citation

Hendershott, Patric H., Tax Reform, Interest Rates and Capital Allocation (September 1985). NBER Working Paper No. w1708, Available at SSRN: https://ssrn.com/abstract=338783

Patric H. Hendershott (Contact Author)

University of Aberdeen - Centre for Property Research ( email )

Aberdeen AB24 2UF
Scotland

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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