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image (Shifts (Tax (Application (Tax Credit), UC :arrow_up:), Tech (MPK …
Decision
UC
rPk + dPk
dPk
Depreciation
rPk
Interest
(r+d)Pk
Taxation
(1-t)MPK
MPk = UC
Shifts
Tech
MPK :arrow_up:
Tax
UC :arrow_up:
Application
Tax Credit
R
UC :arrow_down:
Indicator
EffectiveTaxRate
CrowdingOut
Investment :arrow_down:
D :arrow_up:
UC :arrow_up:
NetInvestment
Symbols
Kt
Beginning Stock
Kt+1
End year stock
It
Gross investment
dKt
Depreciation
Kd
Desired Investment
Kt+1 - Kt = It - dKt :red_flag:
Desired vs Investment
Actual vs. Planned
