Lei, Adrian C. H.; Yick, Martin H. Y.; Lam, Keith S. K. - In: Applied Economics 46 (2014) 11, pp. 1267-1278
The objective of this article is to examine how default and investment triggers change under different levels of tax asymmetry when firms face nonlinear tax schedules. Under a convex tax schedule, profits are taxed at a higher rate, while losses are taxed (or rebated) at a lower rate, thus...