@techreport{Panteghini2006simple,
abstract = {The evidence shows that in most countries the present value of depreciation allowances is less than 100% of the cost of capital. In this article we use a real-option model with debt financing, and show that less favorable depreciation allowances are offset by tax benefits arising from debt financing. Allowing partial deduction of capital cost is thus a necessary condition for investment neutrality to hold.},
address = {M\"{u}nchen},
author = {Paolo M. Panteghini},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {D92; G33; 330},
language = {eng},
number = {1784},
publisher = {CESifo},
title = {A simple explanation for the unfavorable tax treatment of investment costs},
type = {CESifo working paper},
url = {http://hdl.handle.net/10419/25829},
year = {2006}
}
