Production And Tax Policies In The Sawmill Planing Mill And Shingle Mill Products Industry PDF Download

This study develops a dynamic model of the sawmill and planing mill industry in order to characterize the determinants of output supply, input demand, and the effects of recent tax reform proposals. The model incorporates multiple outputs, mark-ups for different outputs, adjustment costs for capital, and all relevant corporate tax instruments. The effects of changes to the investment tax credit, to the capital cost allowance on buildings, to the capital cost allowance on machinery, and to the corporate income tax rate are analyzed. The study is divided into sections covering the theoretical model, the empirical specification and estimation results, the estimated price elasticities, the rates of technological change and returns to scale in the industry, and the results of the effects on production and profit from the tax reform.