Finance and Economics Discussion Series: Inflation, Taxes, and the Durability of Capital by Kevin Hassett, Darrel Cohen

Finance and Economics Discussion Series: Inflation, Taxes, and the Durability of Capital

Kevin Hassett, Darrel Cohen

24 pages missing pub info (editions)

nonfiction politics
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Auerbach (1979, 1981) has demonstrated that inflation can lead to large inter-asset distortions, with the negative effects of higher inflation unambiguously declining with asset life. We show that this is true only if depreciation is treated as ge...

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