TY  - JOUR
AU  - Feldstein,Martin
AU  - Summers,Lawrence H.
TI  - Inflation, Tax Rules, and the Long Term Interest Rates
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 232
PY  - 1979
Y2  - April 1979
UR  - http://www.nber.org/papers/w0232
L1  - http://www.nber.org/papers/w0232.pdf
N1  - Author contact info:
Martin S. Feldstein
President Emeritus
NBER
1050 Massachusetts Avenue
Cambridge, MA  02138-5398
Tel: 617/868-3905
Fax: 617/868-7194
E-Mail: msfeldst@nber.org

Lawrence H. Summers
Harvard Kennedy School of Government
79 JFK Street
Cambridge, MA 02138
Tel: 617/495-9322
Fax: 617/495-0436
E-Mail: lhs@harvard.edu
M1  - published as Martin Feldstein, Lawrence Summers. "Inflation, Tax Rules, and the Long-term Interest Rate," in Martin Feldstein, "Inflation, Tax Rules, and Capital Formation" University of Chicago Press (1983)

AB  - Although the return to capital is a focus of research in both macroeconomics and public finance, each specialty has approached this subject with an almost total disregard for the other's contribution. Macroeconomic studies of the effect of inflation on the rate of interest have implicitly ignored the existence of taxes and the problems of tax depreciation. Similarly, empirical studies of the incidence of corporate tax changes have not recognized that the effect of the tax depends on the rate of inflation and have ignored the information on the rate of return that investors receive in financial  markets. Our primary purpose in this paper is to begin to build a bridge between these two approaches to a common empirical problem.
ER  -