Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/94040 
Year of Publication: 
2010
Series/Report no.: 
SFB/TR 15 Discussion Paper No. 306
Publisher: 
Sonderforschungsbereich/Transregio 15 - Governance and the Efficiency of Economic Systems (GESY), München
Abstract: 
We study a two-player dynamic investment model with information externalities and provide necessary and sufficient conditions for a unique switching equilibrium. When the public information is sufficiently high and a social planer therefore expects an investment boom, investments should be taxed. Conversely, any positive investment tax is suboptimally high if the public information is sufficiently unfavorable.We also show that an investment tax may increase overall investment activity.
Subjects: 
Information Externality
Strategic Waiting
Delay
Information Cascade
Investment Boom
Optimal Taxation
JEL: 
D62
D83
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.