Working Paper: NBER ID: w1708
Authors: Patric H. Hendershott
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.
Keywords: No keywords provided
JEL Codes: No JEL codes provided
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Tax Reforms (H29) | Interest Rates (E43) |
| Interest Rates (E43) | Capital Allocation (G31) |
| Tax Reforms (H29) | Capital Allocation (G31) |