Are Tax Effects Important in the Long-Run Fisher Relation? Evidence from the Municipal Bond Market
11 Pages Posted: 7 May 1997
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: 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
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