Effects of Tax Depreciation Policy and Investment Incentives on Optimal Equipment Replacement Decisions: Comment

Autor:	Ronald D. Kay, Edward M. Rister
Rok vydání:	1976
Předmět:	Finance Economics and Econometrics business.industry Depreciation Legislation Monetary economics Investment (macroeconomics) Agricultural and Biological Sciences (miscellaneous) Return on investment Income tax Economics Capital asset Asset (economics) business Open-ended investment company
Zdroj:	American Journal of Agricultural Economics. 58:355-358
ISSN:	1467-8276 0002-9092
DOI:	10.2307/1238994
Popis:	The recent article by Chisholm in this Journal is a welcome addition to the literature on farm-asset replacement. The effect of income taxes on asset replacement has been largely ignored in the economic analyses of decisionmaking by the farm firm. Yet farmers obviously operate in an environment in which income taxes are an important factor in many of the decisions they make. Chisholm reported the results of changes in Australian income tax legislation on the optimal replacement time for a capital asset. He also reported that, by applying U.S. income tax regulations to his data, he found an eleven-year optimal replacement policy that was the upper limit on his data. The only exception was for an after-tax discount rate of zero when the indicated replacement age was eight years. These results were reported as being unaffected by the depreciation method used or by including additional first-year depreciation and investment credit in his model.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_dedup___::1c8a9e93a120db986ac9989100e5c82a https://doi.org/10.2307/1238994 Zobrazit plný text záznamu Plný text ve formátu PDF