Progressive taxation, tax exemption, and irreversible investment under uncertainty

Journal of Public Economic Theory

Volumn 10, Issue 1, 2008, Pages 149-169

  Alvarez, Luis H R ^a   Koskela, Erkki ^b  

^a UNIVERSITY OF TURKU   (Finland)

^b UNIVERSITY OF HELSINKI   (Finland)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 38549093040     PISSN: 10973923     EISSN: 14679779     Source Type: Journal    
DOI: 10.1111/j.1467-9779.2008.00356.x     Document Type: Article

References (34)

1. AGLIARDI, E. (2001) Taxation and investment decisions: A real options approach, Australian Economic Papers 40, 44 55.
2. ALVAREZ, L. H. R. (2004) A class of solvable impulse control problems, Applied Mathematics & Optimization 49, 265 295.
3. ALVAREZ, L. H. R., and V. KANNIAINEN (1997) Valuation of irreversible entry options under uncertainty and taxation, University of Munich, CES working papers, No. 144.
4. ALVAREZ, L. H. R., V. KANNIAINEN, and J. SÖDERSTEN (1998) Tax policy uncertainty and corporate investment: A theory of tax-induced investment spurts, Journal of Public Economics 69, 17 48.
5. ALVAREZ, L. H. R., V. KANNIAINEN, and J. SÖDERSTEN (2000) Why is the corporation tax not neutral? Anticipated tax reform, investment spurts and corporate borrowing, FinanzArchiv 56, 285 309.
6. ALVAREZ, L. H. R., and E. KOSKELA (2007a) Irreversible capital accumulation and non-linear tax policy: A note, FinanzArchiv 63, 46 53.
7. ALVAREZ, L. H. R., and E. KOSKELA (2007b) Taxation and rotation age under stochastic forest stand value, Journal of Environmental Economics and Management 54, 113 127.
8. ASPLUND, M. (2000) What fraction of a capital investment is sunk costs, The Journal of Industrial Economics 48, 287 304.
9. BERNANKE, B. S. (1983) Irreversibility, uncertainty, and cyclical investment, Quarterly Journal of Economics 98, 85 103.
10. BERTOLA, G. (1998) Irreversible investment, Research in Economics 52, 3 37.
11. BORODIN, A., and P. SALMINEN (2002) Handbook on Brownian motion - Facts and formulae, 2nd edition, Birkhauser : Basel.
12. BRENNAN, M. J., and E. S. SCHWARTZ (1985) Evaluating natural resource investments, Journal of Business 58, 135 157.
13. CABALLERO, R. J. (1999) Aggregate investment, in Handbook of Macroeconomics, Vol. 1B, J. P. Taylor, and M. Woodford, eds, 813 862.
14. DIXIT, A. K., and R. S. PINDYCK (1994) Investment under Uncertainty, Princeton : Princeton UP.
15. HASSETT, K. A., and G. E. METCALF (1999) Investment with uncertain tax policy: Does random tax policy discourage investment?, Economic Journal 109, 373 393.
16. JACOBS, B. (2006) Real options and human capital investment, Mimeo, University of Tilburg.
17. LAMBERT, P. J. (2001) The Distribution and Redistribution of Income, 3rd edition, Manchester : Manchester University Press.
18. LUND, D. (1992) Petroleum taxation under uncertainty: Contingent claims analysis with an application to Norway, Energy Economics 14, 23 31.
19. METCALF, G. E., and K. A. HASSETT (1995) Investment under alternative return assumptions: Comparing random walks and mean reversion, Journal of Economic Dynamics and Control 19, 1471 1488.
20. MUSGRAVE, R. A., and T. THIN (1948) Income tax progression 1929-48, The Journal of Political Economy 56, 498 514.
21. NIEMANN, R. (1999) Neutral taxation under uncertainty - a real option approach, FinanzArchiv 56, 51 66.
22. NIEMANN, R. (2004) Tax rate uncertainty, investment decisions, and tax neutrality, International Tax and Public Finance 11, 265 281.
23. NIEMANN, R., and C. SURETH (2004) Tax neutrality under risk irreversibility and risk aversion, Economics Letters 84, 43 47.
24. OECD Tax Database, 2000.
25. PANTEGHINI, P. M. (2001) On corporate tax asymmetries and neutrality, German Economic Review 2 (3 269 286.
26. PANTEGHINI, P. M. (2002) Corporate tax asymmetries under investment irreversibility, FinanzArchiv: Public Finance Analysis 58, 207 226.
27. PANTEGHINI, P. M. (2004) Wide versus narrow tax bases under optimal investment timing, FinanzArchiv 60, 482 493.
28. PANTEGHINI, P. M. (2005) Asymmetric taxation under incremental and sequential investment, Journal of Public Economic Theory 7, 761 779.
29. PENNINGS, E. (2000) Taxes and stimuli of investment under uncertainty, European Economic Review 44, 383 391.
30. RAMEY, V. A., and M. D. SHAPIRO (1998) Displaced Capital, Working Paper Series, No. NBER 6775.
31. RAMEY, V. A., and M. D. SHAPIRO (2001) Displaced capital: A study of aerospace plant closings, The Journal of Political Economy 109, 958 992.
32. SALMINEN, P. (1985) Optimal stopping of one-dimensional diffusions, Matematische Nachrichten 124, 85 101.
33. SINN, H.-W. (1987) Capital Income Taxation and Resource Allocation, Amsterdam : North-Holland.
34. SURETH, C. (2002) Partially irreversible investment decisions and taxation under uncertainty: A real option approach, German Economic Review 3 (2 185 221.