In this paper, we summarize recent advances in the study of effects of tax policy on the fixed investment decisions of firms. We attempt to identify consensus w

Tax incentives neither make up for serious deficiencies in a country's investment environment nor generate the desired externalities. But when other factors, su

V.1 Capital theory and investment behavior -- V.2 Tax policy and the cost of capital.

For almost thirty years, Brookings Papers on Economic Activity (BPEA) has provided academic and business economists, government officials, and members of the fi