Tax Policy and Business Fixed Investment Revisited

摘要

A response to OTA Papers 46 and 47 which were critical of the approaches used to estimate investment responses to tax policy changes in the Data Resources Inc. model. The authors of this paper explain the underlying theory of the DRI approach, describe the supporting empirical evidence, and provide a sensitivity analysis of business tax incentives. They also provide evidence that they feel rebuts the criticism of DRI methods contained in OTA papers 46 and 47.