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http://hdl.handle.net/10419/56109
  

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dc.contributor.authorHortlund, Peren_US
dc.date.accessioned2012-03-28T13:03:36Z-
dc.date.available2012-03-28T13:03:36Z-
dc.date.issued2005en_US
dc.identifier.urihttp://hdl.handle.net/10419/56109-
dc.description.abstractDoes the combination of inflation and high corporate taxes explain the increase in bank leverage in the 20th century? Inflation automatically increases bank debt, while high corporate taxes hinder capital accumulation. Capital ratios therefore drop, until leverage-induced returns are sufficient to uphold them at constant levels. This theory was confronted with Swedish bank data 1870-2001. Bank capital ratios dropped when inflation and corporate tax rates were high, during WWI and in 1940-1980. The theory can explain the sinking bank capital ratios during these periods, but also their relative stability since the early 1980s. High corporate taxes and inflation were estimated to account for half of the drop in Swedish bank capital ratios since WWII.en_US
dc.language.isoengen_US
dc.publisherEkonomiska Forskningsinst. Stockholmen_US
dc.relation.ispartofseriesSSE/EFI Working Paper Series in Economics and Finance 612en_US
dc.subject.jelE44en_US
dc.subject.jelE52en_US
dc.subject.jelG28en_US
dc.subject.jelG32en_US
dc.subject.jelH25en_US
dc.subject.jelN23en_US
dc.subject.jelN24en_US
dc.subject.ddc330en_US
dc.subject.keywordBank leverageen_US
dc.subject.keywordCapital-asset ratioen_US
dc.subject.keywordInflationen_US
dc.subject.keywordCorporate taxesen_US
dc.subject.stwBanken_US
dc.subject.stwBankgeschichteen_US
dc.subject.stwEigenkapitalen_US
dc.subject.stwInflationen_US
dc.subject.stwUnternehmensbesteuerungen_US
dc.subject.stwSchwedenen_US
dc.titleDo inflation and high taxes increase bank leverage?en_US
dc.typeWorking Paperen_US
dc.identifier.ppn503294543en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:SSE/EFI Working Paper Series in Economics and Finance, EFI - The Economic Research Institute, Stockholm School of Economics

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