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The aim is to compare the welfare costs of various U.S. corporate tax systems under different inflation scenarios.

Uncertainty Welfare Cost, and the "Adaptibility" of U.S. Corporate Texas.

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The aim is to compare the welfare costs of various U.S. corporate tax systems under different inflation scenarios.
Analyzed three alternative tax systems: 1980 depreciation allowances, 1982 accelerated cost recovery, and the Auerbach-Jorgenson proposal.
Studied the effects of expected inflation rates on the welfare cost associated with these systems.
Economic depreciation and full indexing significantly reduce welfare losses linked to investment distortions.
Welfare costs varied depending on the tax system applied to the capital stock under inflation expectations.

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Working paper compares welfare costs under different U.S. corporate tax systems, suggesting a solution to minimize losses.

Philip J. Harmelink (1984) studied this question.

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