The User Cost of Capital: Link from Macroeconomic Policy to Business Decisions

1998 ◽  
pp. 30-40
Author(s):  
John Randolph Norsworthy ◽  
Diana H. Tsai
Keyword(s):  
Cost Of Capital ◽  
Macroeconomic Policy ◽  
User Cost ◽  
Business Decisions

scholarly journals Taxes and the User Cost of Capital for Owner-Occupied Housing

1982 ◽  
Vol 10 (4) ◽  
pp. 375-393 ◽  
Author(s):  
Patric H. Hendershott ◽  
Joel Slemrod
Keyword(s):  
Cost Of Capital ◽  
User Cost

scholarly journals Inflation and the User Cost of Capital: Does Inflation Still Matter?

10.3386/w6046 ◽  
1997 ◽  
Author(s):  
Darrel Cohen ◽  
Kevin Hassett ◽  
R. Glenn Hubbard
Keyword(s):  
Cost Of Capital ◽  
User Cost

scholarly journals EX POST VERSUS EX ANTE MEASURES OF THE USER COST OF CAPITAL

2007 ◽  
Vol 53 (2) ◽  
pp. 295-317 ◽  
Author(s):  
Nicholas Oulton
Keyword(s):  
Cost Of Capital ◽  
User Cost ◽  
Ex Post ◽  
Ex Ante

Tax Policy under Nongeometric Physical Depreciation

1986 ◽  
Vol 14 (3) ◽  
pp. 263-288
Author(s):  
Tryphon Kollintzas
Keyword(s):  
Tax Policy ◽  
Income Tax ◽  
Cost Of Capital ◽  
Tax Structure ◽  
User Cost ◽  
Policy Changes ◽  
Fixed Investment ◽  
Major Implication ◽  
The U.S

This article takes into account most important features of the U.S. corporation income tax structure in the derivation of the user cost of capital from a model that allows for nonstatic expectations and nongeometric physical depreciation. The depreciation component of the derived user cost of capital is a function of the discounted future stream of after-tax replacement costs necessary to maintain indefinitely one unit of capital. This establishes a previously neglected channel through which tax policy may affect the user cost of capital and therefore fixed investment. The major implication of this finding is that tax policy changes that are perceived to be relatively temporary may have a smaller impact on fixed investment than previously thought.

scholarly journals User Costs versus Waiting Services and Depreciation in a Model of Production

2010 ◽  
Vol 230 (6) ◽  
Author(s):  
W.Erwin Diewert
Keyword(s):  
Capital Stock ◽  
General Model ◽  
Cost Of Capital ◽  
User Cost ◽  
Capital Goods ◽  
User Costs ◽  
Resource Requirements ◽  
The One ◽  
Investment Goods ◽  
Period Model

SummaryThe paper develops an extension of a one period model of production involving beginning and end of the period capital stocks along with output and input flows that is due to Hicks and Edwards and Bell. This generalized Austrian model of production takes into account that end of the period capital stocks result from: (i) purchases of new investment goods; (ii) internal construction of firm capital stock components and (iii) holdings of (depreciated) capital goods that were held by the firm at the beginning of the period. These different methods of creating end of period holdings of capital stocks generally have different resource requirements and hence the one period production possibilities set is more complex than the usual one. This general model of production is used to justify the decomposition of the Jorgensonian user cost of capital into separate waiting services and depreciation components.

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