Asymmetric Taxation Under Incremental and Sequential Investment

28 Pages Posted: 28 Jun 2002

See all articles by Paolo M. Panteghini

Paolo M. Panteghini

Department of Economics and Management; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Date Written: May 2002

Abstract

This article discusses the effects of an asymmetric tax scheme on incremental and sequential investment strategies. The tax base is equal to the firm's return, net of an imputation rate. When the firm's return is less than this rate, however, no tax refunds are allowed. This scheme is neutral under both income and capital uncertainty.

Keywords: Corporate Taxation, Real Options

JEL Classification: H32

Suggested Citation

Panteghini, Paolo M., Asymmetric Taxation Under Incremental and Sequential Investment (May 2002). Available at SSRN: https://ssrn.com/abstract=316625

Paolo M. Panteghini (Contact Author)

Department of Economics and Management ( email )

Contrada Santa Chiara 50
BRESCIA, BS 25122
Italy

CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.cesifo.de

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