These studies of the cost of capital will inspire and guide policy-makers who share the goal of making the allocation of capital in a market economy more efficient.
Volume 2 is devoted to the cost of capital approach to tax policy. This approach has supplied an important intellectual impetus for reforms of capital income taxation in the United States and around the world. Widespread applications of the cost of capital and the closely related concept of the marginal effective tax rate are due to the fact that these concepts facilitate the representation of economically relevant features of complex tax statutes in a highly succinct form.
About the Author
Dale W. Jorgenson is Samuel W. Morris University Professor of Economics at Harvard University.
"Dale Jorgenson . . . is preeminently the master of the territorybetween economics and statistics, where both have to be applied to thestudy of concrete probl ems. His prolonged exploration of thedeterminants of investment spending, whatever its ultimate lessons,will certainly long stand as one of the finest example s in themarriage of theory and practice in economics." —John Bates Clark Medal citation by the American Economic Association