THE EFFECTS OF INFLATION AND BUSINESS INCOME TAXES ON INVESTMENT AND NATURAL RESOURCE UTILIZATION.

Persistent Link:
http://hdl.handle.net/10150/187625
Title:
THE EFFECTS OF INFLATION AND BUSINESS INCOME TAXES ON INVESTMENT AND NATURAL RESOURCE UTILIZATION.
Author:
MAYNE, FRANK ANDREWS.
Issue Date:
1982
Publisher:
The University of Arizona.
Rights:
Copyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.
Abstract:
The combination of price inflation and historical cost-based depreciation for tax purposes has been shown in the finance literature to reduce the present value of depreciation deductions. Since tax depreciation deductions are limited to a nominal dollar amount, when inflation occurs a future tax deduction has less real value. This effect is pedagogically presented in a capital budgeting context. In the economic literature Hotelling and Herfindahl have contributed models describing natural resource production changes in response to changes in demand, production cost, and cost of capital. Parts of the inflation-explicit capital budgeting model and the Hotelling and Herfindahl models are combined. The result is a partial equilibrium model which yields the conclusion that production from a natural resource is reduced if inflation is increased. Copper industry data from 1947-1978 are examined for empirical confirmation of the theoretical model. A copper industry production function, which contained demand, real price and labor strike variables, gained in descriptive capability by inclusion of inflation as an additional multiple regression variable. The dissertation reviews literature on the relationship between capital investment and inflation. The cases of hyper-inflation in Germany and medium inflation in Latin America are considered. Other literature review topics include the inflation effects in the securities markets, inflation-caused wealth transfers and inflation adjustments in accounting statements.
Type:
text; Dissertation-Reproduction (electronic)
Keywords:
Taxation -- Effect of inflation on.; Investments.; Natural resources.; Production (Economic theory)
Degree Name:
Ph.D.
Degree Level:
doctoral
Degree Program:
Business Administration Committee; Graduate College
Degree Grantor:
University of Arizona

Full metadata record

DC FieldValue Language
dc.language.isoenen_US
dc.titleTHE EFFECTS OF INFLATION AND BUSINESS INCOME TAXES ON INVESTMENT AND NATURAL RESOURCE UTILIZATION.en_US
dc.creatorMAYNE, FRANK ANDREWS.en_US
dc.contributor.authorMAYNE, FRANK ANDREWS.en_US
dc.date.issued1982en_US
dc.publisherThe University of Arizona.en_US
dc.rightsCopyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.en_US
dc.description.abstractThe combination of price inflation and historical cost-based depreciation for tax purposes has been shown in the finance literature to reduce the present value of depreciation deductions. Since tax depreciation deductions are limited to a nominal dollar amount, when inflation occurs a future tax deduction has less real value. This effect is pedagogically presented in a capital budgeting context. In the economic literature Hotelling and Herfindahl have contributed models describing natural resource production changes in response to changes in demand, production cost, and cost of capital. Parts of the inflation-explicit capital budgeting model and the Hotelling and Herfindahl models are combined. The result is a partial equilibrium model which yields the conclusion that production from a natural resource is reduced if inflation is increased. Copper industry data from 1947-1978 are examined for empirical confirmation of the theoretical model. A copper industry production function, which contained demand, real price and labor strike variables, gained in descriptive capability by inclusion of inflation as an additional multiple regression variable. The dissertation reviews literature on the relationship between capital investment and inflation. The cases of hyper-inflation in Germany and medium inflation in Latin America are considered. Other literature review topics include the inflation effects in the securities markets, inflation-caused wealth transfers and inflation adjustments in accounting statements.en_US
dc.typetexten_US
dc.typeDissertation-Reproduction (electronic)en_US
dc.subjectTaxation -- Effect of inflation on.en_US
dc.subjectInvestments.en_US
dc.subjectNatural resources.en_US
dc.subjectProduction (Economic theory)en_US
thesis.degree.namePh.D.en_US
thesis.degree.leveldoctoralen_US
thesis.degree.disciplineBusiness Administration Committeeen_US
thesis.degree.disciplineGraduate Collegeen_US
thesis.degree.grantorUniversity of Arizonaen_US
dc.contributor.committeememberHawkins, Clarken_US
dc.contributor.committeememberEmery, Johnen_US
dc.contributor.committeememberBarrett, Williamen_US
dc.identifier.proquest8217436en_US
dc.identifier.oclc681763871en_US
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