Are Tax Effects Important in the Long-Run Fisher Relation? Evidence from the Municipal Bond Market

11 Pages Posted: 7 May 1997

See all articles by William J. Crowder

William J. Crowder

University of Texas at Arlington - College of Business Administration - Department of Economics

Mark E. Wohar

University of Nebraska at Omaha

Date Written: February 1997

Abstract

Recent studies of the Fisher relation have yielded contradictory conclusions on the importance of taxes in determining the long-run response of nominal interest rates to changes in expected inflation. This study uses data on taxable U.S. treasury and tax exempt municipal bond interest rates to shed light on the effects of inflation on nominal interest rates.

JEL Classification: G19

Suggested Citation

Crowder, William J. and Wohar, Mark E., Are Tax Effects Important in the Long-Run Fisher Relation? Evidence from the Municipal Bond Market (February 1997). Available at SSRN: https://ssrn.com/abstract=35980 or http://dx.doi.org/10.2139/ssrn.35980

William J. Crowder (Contact Author)

University of Texas at Arlington - College of Business Administration - Department of Economics ( email )

Box 19479 UTA
Arlington, TX 76019
United States
817-272-3061 (Phone)
817-273-3145 (Fax)

Mark E. Wohar

University of Nebraska at Omaha ( email )

Department of Economics
6708 Pine Street MH 332S
Omaha, NE 68182
United States
402-554-3712 (Phone)
402-554-2853 (Fax)

HOME PAGE: http://cba.unomaha.edu/faculty/mwohar/WEB/homepage.html

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