THE INFLUENCE OF TAX INCENTIVES ON THE INVESTMENT DECISIONS IN U.K. MANUFACTURING

Drawing attention to the failure of a number of econometric\nstudies to isolate the reasons for the low level of investment sn\nUK manııfacturing, this study tackîes the problem at the level\nof the investment decision of the single firrn and calîs for\nresearch at the microeconomic level. For the determination of\ninvestment, a single linear model with independent variables\nlike profits, sales, cash flow, and tax incentives is proposed and\nempirical resuîts from it are fully discussed.