Why is Investment Subsidized?
解释为何现实中投资被补贴而资本被征税，通过一个序贯博弈模型，其中每期政府独立决定当期税收政策，均衡结果即投资补贴与资本征税并存。
In most economies, investment is subsidized while capital is taxed. This is difficult to explain in a traditional perfect-foresight, representative-agent setting in which a single government sets all current and future taxes on capital. The authors consider a sequential-game setting in which tax policy in a period is determined by the government in power in that period. In equilibrium, investment is subsidized while capital is taxed. Copyright 1989 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.