Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/18741
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dc.contributor.authorAlvarez, Luis H. R.en_US
dc.contributor.authorKoskela, Erkkien_US
dc.date.accessioned2009-01-28T15:52:33Z-
dc.date.available2009-01-28T15:52:33Z-
dc.date.issued2005en_US
dc.identifier.urihttp://hdl.handle.net/10419/18741-
dc.description.abstractWe analyze the impact of progressive taxation on irreversible investment under uncertainty. We show that if tax exemption is lower than sunk cost, higher tax rate will decelerate optimal investment by increasing the optimal investment threshold, while if tax exemption exceeds sunk cost, three different regimes arise. For "small" volatilities the optimal investment threshold is a positive function of volatility, but independent of tax rate. For "medium" volatilities it is independent of both tax rate and volatility. Finally, for "high" volatilities the optimal investment threshold depends positively on volatility, but negatively on tax rate so that we have "tax paradox".en_US
dc.language.isoengen_US
dc.publisher|aCenter for Economic Studies and Ifo Institute (CESifo) |cMunichen_US
dc.relation.ispartofseries|aCESifo Working Paper |x1377en_US
dc.subject.jelD80en_US
dc.subject.jelH25en_US
dc.subject.jelG31en_US
dc.subject.ddc330en_US
dc.subject.keywordirreversible investments under uncertaintyen_US
dc.subject.keywordprogressive taxationen_US
dc.subject.stwInvestitionen_US
dc.subject.stwSunk Costsen_US
dc.subject.stwEntscheidung bei Unsicherheiten_US
dc.subject.stwSteuerprogressionen_US
dc.subject.stwSteuerbegünstigungen_US
dc.subject.stwSteuerwirkungen_US
dc.subject.stwTheorieen_US
dc.titleProgressive taxation and irreversible investment under uncertaintyen_US
dc.typeWorking Paperen_US
dc.identifier.ppn47911661Xen_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-

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