25-vol. 13, no. 1, january-june, 1998
Articles

The effect of inflation on growth investments: A note

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  • Clovis De Faro
Clovis De Faro
Fundação Getúlio Vargas
DOI: https://doi.org/10.24201/ee.v13i1.239

Published 1998-01-01

Keywords

  • inflation,
  • no-reinvestment,
  • BV

How to Cite

De Faro, C. (1998). The effect of inflation on growth investments: A note. Estudios Económicos De El Colegio De México, 13(1), 81–91. https://doi.org/10.24201/ee.v13i1.239

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Abstract

Motivated by the pioneering work of Brenner and Venetia (1983), henceforth designated as BV, a previous note that focused attention on the effect of taxation on the optimal duration of investments in a non-inflationary environment (de Faro, 1996), the present note is aimed at investigating the effects of inflation on the optimal duration of investments. Specifically, considering the no-reinvestment case only, our objective is to include in the analysis both a numerical illustration of the peculiar results of BV as well as indexation procedures that have been used in some high inflation economies.

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References

  1. Brenner, Menachem and Itzak Venetia (1983). “The Effects of Inflation and Taxes on Growth Investment and Replacement Policies”, Journal of Finance, 38, pp. 1519-1528.
  2. Faro, Clovis de (1996), “The Effect of Taxes on Growth Investments: A Note”, Revista de Análisis Económico, 11, pp. 139-142.
  3. Fishlow, Albert (1974). “Indexing Brazilian Style: Inflation without Tears?”, Brookings Papers on Economic Activity, 1, pp. 261-280.
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