The debt tax shield in general equilibrium

Type of Publication: Journal article
Publication status: Published
Author: Fischer, Marcel; Jensen, Bjarne Astrup
Year of publication: 2019
Published in: Journal of Banking & Finance ; 100 (2019). - pp. 151-166. - ISSN 0378-4266. - eISSN 1872-6372
DOI (citable link): https://dx.doi.org/10.1016/j.jbankfin.2018.12.014
Summary:
We study the general-equilibrium effects of the corporate debt tax shield in an endowment economy with a redistributive tax system that taxes firm profits and household income and redistributes tax revenues in an attempt to harmonize households’ lifetime consumption opportunities. In general equilibrium, the debt tax shield not only affects corporate capital structure and valuation but also causes poorer households to consume more and save less at a younger age. Without the debt tax shield, the same welfare improvements for poorer households are achievable with significantly lower tax rates.
JEL Classification: G11; E21; H23; H31; H32
Subject (DDC): 330 Economics
Keywords: Debt tax shield, Corporate leverage, General equilibrium, Endowment economy, Redistributive taxation
Bibliography of Konstanz: Yes
Refereed: Yes

Cite This

Files in this item

Files Size Format View

There are no files associated with this item.

FISCHER, Marcel, Bjarne Astrup JENSEN, 2019. The debt tax shield in general equilibrium. In: Journal of Banking & Finance. 100, pp. 151-166. ISSN 0378-4266. eISSN 1872-6372. Available under: doi: 10.1016/j.jbankfin.2018.12.014

@article{Fischer2019-03shiel-45615, title={The debt tax shield in general equilibrium}, year={2019}, doi={10.1016/j.jbankfin.2018.12.014}, volume={100}, issn={0378-4266}, journal={Journal of Banking & Finance}, pages={151--166}, author={Fischer, Marcel and Jensen, Bjarne Astrup} }

<rdf:RDF xmlns:dcterms="http://purl.org/dc/terms/" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:rdf="http://www.w3.org/1999/02/22-rdf-syntax-ns#" xmlns:bibo="http://purl.org/ontology/bibo/" xmlns:dspace="http://digital-repositories.org/ontologies/dspace/0.1.0#" xmlns:foaf="http://xmlns.com/foaf/0.1/" xmlns:void="http://rdfs.org/ns/void#" xmlns:xsd="http://www.w3.org/2001/XMLSchema#" > <rdf:Description rdf:about="https://kops.uni-konstanz.de/rdf/resource/123456789/45615"> <dcterms:issued>2019-03</dcterms:issued> <dcterms:abstract xml:lang="eng">We study the general-equilibrium effects of the corporate debt tax shield in an endowment economy with a redistributive tax system that taxes firm profits and household income and redistributes tax revenues in an attempt to harmonize households’ lifetime consumption opportunities. In general equilibrium, the debt tax shield not only affects corporate capital structure and valuation but also causes poorer households to consume more and save less at a younger age. Without the debt tax shield, the same welfare improvements for poorer households are achievable with significantly lower tax rates.</dcterms:abstract> <dc:creator>Fischer, Marcel</dc:creator> <dc:creator>Jensen, Bjarne Astrup</dc:creator> <dc:contributor>Jensen, Bjarne Astrup</dc:contributor> <dc:language>eng</dc:language> <dcterms:isPartOf rdf:resource="https://kops.uni-konstanz.de/rdf/resource/123456789/46"/> <dc:date rdf:datatype="http://www.w3.org/2001/XMLSchema#dateTime">2019-04-10T11:30:25Z</dc:date> <void:sparqlEndpoint rdf:resource="http://localhost/fuseki/dspace/sparql"/> <dcterms:available rdf:datatype="http://www.w3.org/2001/XMLSchema#dateTime">2019-04-10T11:30:25Z</dcterms:available> <dc:contributor>Fischer, Marcel</dc:contributor> <foaf:homepage rdf:resource="http://localhost:8080/jspui"/> <bibo:uri rdf:resource="https://kops.uni-konstanz.de/handle/123456789/45615"/> <dspace:isPartOfCollection rdf:resource="https://kops.uni-konstanz.de/rdf/resource/123456789/46"/> <dcterms:title>The debt tax shield in general equilibrium</dcterms:title> </rdf:Description> </rdf:RDF>

This item appears in the following Collection(s)

Search KOPS


Browse

My Account