Asymmetric taxation under incremental and sequential investment

Paolo M. Panteghini

This article discusses the effects of an asymmetric tax scheme on incremental and sequential investment strategies. The tax base is equal to the firm s return, net of an imputation rate. When the firm s return is less than this rate, however, no tax refunds are allowed. This scheme is neutral under both income and capital uncertainty.

MoreLess

Year of publication:	2002
Authors:	Panteghini, Paolo
Publisher:	München : CESifo
Subject:	corporate taxation \| real options \| Unternehmensbesteuerung \| Corporate taxation \| Theorie \| Theory \| Realoptionsansatz \| Real options analysis \| Investition \| Investment \| Besteuerungsprinzip \| Taxation principle \| Steuervergünstigung \| Tax incentive \| Entscheidung unter Unsicherheit \| Decision under uncertainty \| Sunk Costs \| Sunk costs \| Investitionsentscheidung \| Investment decision \| Körperschaftsteuer \| Corporate income tax