Artigo em revista científica Q1
On the effects of investment tax credits on economic efficiency and growth
Alfredo Pereira (Pereira, A.);
Título Revista
Journal of Public Economics
Ano (publicação definitiva)
1994
Língua
Inglês
País
Suíça
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Abstract/Resumo
This paper explores the overall efficiency effects of ITCs in the context of a disaggregated dynamic general equilibrium simulation model of the U.S. economy. This model postulates forward-looking investment decisions, and allows for optimal government borrowing and financial crowding out. Simulation results confirm the conventional wisdom that ITCs are distortionary, but challenge the equally conventional wisdom that ITCs necessarily spur investment and GDP. In addition, results point to an important policy trade-off. Introducing ITCs without neutralizing their budgetary effects would lead to low efficiency losses but would reduce investment and GDP due to financial crowding out. In turn, imposition of ITCs while blocking their budgetary effects would lead to relatively large efficiency losses while minimizing the negative impact on investment and GDP.
Agradecimentos/Acknowledgements
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Palavras-chave
  • Economia e Gestão - Ciências Sociais