In the conventional literature related to investment decisions, less attention has been paid to the length of maturity when investment is debt-financed. In such a case a firm pays the creditor not only the sum of annual interest (initial investment cost multiplied by real interest rate) for the...

This study compares incentive effects of various tax depreciation methods currently adopted in European transition economies. In these countries straight-line, geometric-degressive and accelerated depreciation measures are quite popular in combination with different corporate tax rates. Their...

In this paper we develop the dynamic CGE model, ifoMod, which is designed to analyse the impact of fundamental tax reforms and in particular capital income tax reforms for Germany. The model is in line with neoclassical growth theory and features all important behavioural interactions between...

The past years have seen several tax reform proposals being put forward in Germany. The most prominent ones count the Business Tax Reform 2008 (BTR 2008), the Dual Income Tax (DIT) proposal advanced by the German Council of Economic Advisors and Kirchhof's flat tax. We analyze, compare and...

This article analyses the switch to an Allowance for Corporate Equity (ACE) or to a Comprehensive Business Income Tax (CBIT) type of tax system starting from the present German tax system. We show that in case an ACE type of reform is financed by an increase in the VAT and not in the profit tax,...