A RATIONAL-EXPECTATIONS MODEL FOR TAX POLICY ANALYSIS - AN EVALUATION OF TAX INCENTIVES FOR THE TEXTILE, CHEMICAL AND PHARMACEUTICAL INDUSTRIES OF PAKISTAN

• 成果类型: Article
• 署名作者: RAJAPOPAL, D; SHAH, A
• 署名单位: The World Bank; Toronto Metropolitan University
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/0047-2727(94)01448-W
• 发表日期: 1995
• 页码: 249-276
• 关键词: tax incentives; market structure; SHORT-RUN TAX SHIFTING

摘要

An intertemporal model of a firm optimizing its expected net present value was used to derive the model's estimating equations, and rental prices of capital services consistent with rational expectations. We analysed the effects of a 10 percent change in two tax incentives. For the chemical and pharmaceutical industries the benefits of the tax credit for physical investment (increased investment) far exceeded its costs (forgone tax revenue). This was also true for the R&D tax allowance for the chemical industry. For the textile industry the tax credit's costs exceeded its benefits, and for the pharmaceutical industry the tax allowance's costs exceeded its benefits.