A Retrospective Evaluation of the Effects of Temporary Partial Expensing

@article{Cohen2006ARE,
  title={A Retrospective Evaluation of the Effects of Temporary Partial Expensing},
  author={Darrel S. Cohen and Jason G. Cummins},
  journal={Public Economics: Miscellaneous Issues eJournal},
  year={2006}
}
This paper examines how business investment responded to temporary partial expensing, first enacted in 2002 and expanded in 2003. In principle, partial expensing boosted the incentive to invest which should have had a discernable impact on spending. However, the tax changes did not occur in a vacuum, so it is challenging to isolate their impact. Our empirical approach exploits a feature of the tax change which, under certain assumptions, allows us to cleanly estimate its impact. Specifically… 
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