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where $f_{m,j}$ represents the fraction of the marginal investment financed with debt by firms in industry $m$ and of tax entity type $j$.
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In addition to the cost of capital, the `Cost-of-Capital-Calculator` reports two related measures:
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* The user cost of capital (ucc): $ucc_{i,m,j} = \rho_{i,m,j} + delta_{i}$
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* The user cost of capital (ucc): $ucc_{i,m,j} = \rho_{i,m,j} + \delta_{i}$
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* The tax wedge, which is the difference between the before tax rate of return (which is equivalent to the cost of capital for marginal investments) and the after-tax return top savings. The tax wedge = $\rho_{i,m,j}-s_{m,j}$
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@@ -86,14 +86,14 @@ where $phi$ are the fraction of inventories that use FIFO accounting and $\rho_{
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