全球智库信息集成服务系统(G2TT): DP10847 Optimal Inflation with Corporate Taxation and Financial Constraints

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP10847
	DP10847 Optimal Inflation with Corporate Taxation and Financial Constraints
	Philippe Weil; Giovanni Lombardo; Caterina Mendicino; Daria Finocchiaro
发表日期	2015-09-27
出版年	2015
语种	英语
摘要	This paper revisits the equilibrium and welfare effects of long-run inflation in the presence of distortionary taxes and financial constraints. Expected inflation interacts with corporate taxation through the deductibility of i) capital expenditures at historical value and ii) interest payments on debt. Through the first channel, inflation increases firms? taxable profits and further distorts their investment decisions. Through the second, expected inflation affects the effective real interest rate negatively, relaxes firms? financial constraints and stimulates investment. We show that, in the presence of collateralized debt, the second effect dominates. Therefore, in contrast to earlier literature, we find that when the tax code creates an advantage of debt financing, a positive rate of long-run inflation is beneficial in terms of welfare as it mitigates the financial distortion and spurs capital accumulation.
主题	Monetary Economics and Fluctuations ; Macroeconomics and Growth
关键词	Credit frictions Friedman rule Optimal monetary policy Tax benefits of debt
URL	https://cepr.org/publications/dp10847
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/539676
推荐引用方式 GB/T 7714	Philippe Weil,Giovanni Lombardo,Caterina Mendicino,et al. DP10847 Optimal Inflation with Corporate Taxation and Financial Constraints. 2015.