Note, incidentally, that the preceding argument does not necessarily imply that the individilal firm can shift any or all of the burden of the corporate income tax. As with an increase in fixed costs under competitive equilibrium, the rise in taxes may raise the gross rate of return simply by driving some firms out of business even though no company can do anything about it.
CITATION STYLE
Baumol, W. J. (2018). On the social rate of discount. In Discounting and Environmental Policy (pp. 23–38). Taylor and Francis. https://doi.org/10.4324/9781315199818-10
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