In this article, we analyze a state-contingent tax on capital gains. We start by focusing on Auerbach's (1991) retrospective capital gains tax device. Although this system is equivalent to an accrual method from an ex-ante perspective, it is not on an ex-post basis. As recognized by Auerbach,...

In a recent article Davidson, Lawrence and Wilson propose a model showing that, in the presence of distortionary taxation and goods of different quality, tax evasion can be an optimal device. Here, we show that this result, although quite interesting, cannot be generalised to a framework where...

In a recent article Davidson, Lawrence and Wilson propose a model showing that, in the presence of distortionary taxation and goods of different quality, tax evasion can be an optimal device. Here, we show that this result, although quite interesting, cannot be generalised to a framework where...

In this article, we analyse the interactions between financial and start-up decisions in an oligopolistic framework, where firms compete to enter a new market. We show that preemption can substantially reduce the negative effects of credit rationing on start-up investment decisions.

This article shows how the existing forward-looking measures of the effective tax rate may be biased when firms operate in a dynamic context. Using option pricing techniques we thus propose a measure of the effective tax rate which embodies future business changes.

This article studies the equivalence between labor and consumption taxes in a stochastic context, where the government can undertake an active portfolio management strategy by investing in both risk-free and risky assets. Using a two-period model we have shown that such taxes let consumers make...

This note discusses the neutrality conditions of a Firm Tax. In particular, it proves that the neutrality result found by Bond and Devereux (1995) holds under different default conditions.

In this article, we analyse the interactions between financial and start-up decisions in an oligopolistic framework, where firms compete to enter a new market. We show that preemption can substantially reduce the negative effects of credit rationing on start-up investment decisions.

This article shows how the existing forward-looking measures of the effective tax rate may be biased when firms operate in a dynamic context. Using option pricing techniques we thus propose a measure of the effective tax rate which embodies future business changes.

This note discusses the neutrality conditions of a Firm Tax. In particular, it proves that the neutrality result found by Bond and Devereux (1995) holds under different default conditions.