|
EconStor >
arqus - Arbeitskreis Quantitative Steuerlehre >
arqus Diskussionsbeiträge zur Quantitativen Steuerlehre >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/59879
|
| | |
| Title: | | Asymmetric taxation of profits and losses and its influence on investment timing: Paradoxical effects of tax increases  |
| Authors: | | Mehrmann, Annika Schneider, Georg Sureth, Caren |
| Issue Date: | | 2012 |
| Series/Report no.: | | Arqus-Diskussionsbeiträge zur quantitativen Steuerlehre 134 |
| Abstract: | | Applying a time-discrete investment model and a setting with an entry and an exit option and cash flow uncertainty we present a dynamic analysis of the impact of various loss offset regimes on risky investment timing decisions. We find that a tax system with loss offset restrictions will not distort timing decisions if the investor can exit the project. By contrast, in a setting without exit flexibility a tax discrimination against losses can cause paradoxical effects. In that respect, we analytically identify conditions for higher taxes to increase investors' propensity to choose early investment and hence accelerate entrepreneurial investment. |
| Subjects: | | asymmetric taxation loss offset restrictions timing flexibility investment decisions uncertainty tax effects |
| JEL: | | H21 H25 |
| Document Type: | | Working Paper |
| Appears in Collections: | | arqus Diskussionsbeiträge zur Quantitativen Steuerlehre
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/59879
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|