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Tax incentives and investment in two Canadian manufacturing industries

Canada has pursued during the postwar period a policy of accelerated capital cost allowances to stimulate private investment. Faster write offs increase a firm's cash flows and hence internal funds available for investment. These allowances reduce government revenues since taxes are deferred. These deferred taxes have grown rapidly and now more attention is being paid to the effects of tax incentive devices on investment and on government revenues. / In the thesis non-neoclassical models of investment are employed for an analysis of investment in two manufacturing industries. One model emphasizes the interdependence of the investment and financing decisions of firms. Both sales and external finance are significant determinants of investment expenditures. The main conclusion of the thesis is that accelerated write offs have played a limited role in financing investment. Instead, firms relied more on external borrowing and other financing methods which confer larger tax benefits than faster write offs.

Identiferoai:union.ndltd.org:LACETR/oai:collectionscanada.gc.ca:QMM.77105
Date January 1981
CreatorsForde, Penelope
PublisherMcGill University
Source SetsLibrary and Archives Canada ETDs Repository / Centre d'archives des thèses électroniques de Bibliothèque et Archives Canada
LanguageEnglish
Detected LanguageEnglish
TypeElectronic Thesis or Dissertation
Formatapplication/pdf
CoverageDoctor of Philosophy (Department of Economics)
RightsAll items in eScholarship@McGill are protected by copyright with all rights reserved unless otherwise indicated.
Relationalephsysno: 000137280, proquestno: AAINK54793, Theses scanned by UMI/ProQuest.

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