Investment Behavior in the Iron and Steel Industry of the United States Phase II: Conditional Forecasts and Supply of Funds Model.
NTIS: PB 261 543 Available for Reference At Bureau Libraries :259 pages
The summary of the conditional forecasts concludes that tax policy alone will not be sufficient to attain the expenditure level of $2.9 To $3.5 billion per year targeted by the American Iron and Steel Institute. The implied shortfall will amount to between $0.6 To $1.2 billion per year in constant 1973 dollars. The summary of the recursive model can be stated as an attempt to trace the flow of funds through the business firm in terms of (1) gross cash flow, (2) corporate tax payments on earnings, (3) dividends and retained earnings, (4) gross retained earnings, and (5) stock of long-term debt. The model is recursive rather than simultaneous, implying the absence of strong equilibrium assumptions in the model. Briefly surveyed are the explanatory variables incorporated in each of five behavioral equations. Three of the more important assumptions of the model include (1) economic rationality and maximization of long- run profit, (2) a constant rate of economic depreciation for long periods, and (3) a constant before-tax discount rate in any given period.
CP; Final Contract Report;
NTIS Accession No.
NTIS: PB 261 543 Available for Reference At Bureau Libraries
Pennsylvania State University