Crunch Time: The Optimal Policy to avoid the “Announcement Effect”when Terminating a Subsidy

We are considering for examination an Irreversible Investment under Uncertainty, subsidizedby the government. If the government announces the termination of a form of subsidization,investors may decide to realize their investment in order to obtain the subsidy. These investors mighthave postponed an investment if future payment were assured. Depending on the degree of uncertaintyand the time preference, the termination of said...

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Year of publication:	2006-10-10
Authors:	Gürtler, Marc ; Sieg, Gernot
Institutions:	Institut für Wirtschaftswissenschaften <Braunschweig> / Lehrstuhl BWL, insbes. Finanzwirtschaft
Subject:	Kapitalanlage \| Irreversibilität \| irreversibility

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Extent:	77824 bytes 12 p. application/pdf
Series:	TU-Braunschweig - Institut für Wirtschaftswissenschaften - Lehrstuhl BWL, insbes. Finanzwirtschaft - Publikationen Working Paper Series ; FW24V2
Type of publication:	Book / Working Paper
Language:	English
Classification:	D11 - Consumer Economics: Theory ; H3 - Fiscal Policies and Behavior of Economic Agents ; Corporate taxation and accounting. General ; Individual Working Papers, Preprints ; No country specification
Source:	USB Cologne (business full texts)

Persistent link: https://www.econbiz.de/10005869411