Niemann, Rainer; Sureth, Caren - In: Economics Bulletin 31 (2011) 2, pp. 1047-1054
We analyze the impact of differential capital income taxation on the value of risky investment under irreversibility … have introduced a separate flat tax on capital income. In contrast to uniform taxation, differential capital income … taxation crowds out risky real investment. This dysfunctional effect can neither be corrected by generous depreciation …