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The Tax-adjusted Q Model with Intangible Assets :, Theory and Evidence from Temporary Investment Tax Incentives, Sophia Chen, Estelle Dauchy

We propose a tax-adjusted q model with physical and intangible assets and estimate it with a self-collected comprehensive database of intangible assets. The presence of intangibles changes the accounting and economic measures of q. We show that when tax changes are temporary, the q model can be estimated by adjusting for the firm’s intangible stock and intangible intensity. We estimate our model using temporary investment tax incentive policies in the United States in the early 2000s. When the q-model accounts for intangible assets, the estimated investment elasticity to tax incentives is generally larger than otherwise. It is also larger for intangible-intensive firms, and increases with firm size
Table Of Contents
""Cover""; ""Contents""; ""I. Introduction""; ""II. Intangible Assets and Tax-Adjusted Q: Theory""; ""A. The model""; ""B. Short-run Approximations of Long-lived Assets""; ""C. Investment Responses to a Temporary Tax Change""; ""III. Methodology and Data""; ""A. Bonus Depreciation Allowances""; ""B. Methodology""; ""Empirical Specifications""; ""Discussion on Econometric Challenges""; ""Estimation methods""; ""C. Data""; ""D. Summary Statistics""; ""IV. Results""; ""A. Baseline Results""; ""B. Interpretations: The Economic Size of the Impact of Temporary Tax Incentives""; ""V. Conclusion""
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (54 p.)
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Form Of Item

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