Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/109656
Authors: 
Ackermann, Hagen
Year of Publication: 
2015
Series/Report no.: 
Arqus-Diskussionsbeiträge zur quantitativen Steuerlehre 185
Abstract: 
I study how different types of subsidization affect investment decisions in a laboratory experiment. Even though the expected pro t is identical in all treatments, I find highly significant differences between them. In particular, when investment alternatives get subsidized with tax credits the willingness to invest in the subsidized alternative increases remarkably. In addition, the willingness to take risks increases in general, when tax credits are introduced. Hence, tax credits might be more effective in promoting investments.
Subjects: 
behavioral economics
subsidies
tax incentives
distorting subsidization
real investment
risk-taking behavior
JEL: 
C91
D14
H25
Document Type: 
Working Paper

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