Showing 1 - 10 of 17
Tax uncertainty is often claimed to be harmful for investments. Capital taxes, such as property and wealth taxes, are particularly exposed to tax uncertainty. Capital tax uncertainty emerges from expected tax reforms, the unclear outcome of future tax audits, and simplified estimates of capital...
Persistent link: https://www.econbiz.de/10011521960
This article deals with the integration of taxes into real option-based investment models under risk neutrality and risk averison. It compares the possible approaches dynamic programming and contingent claims analysis to analyze their effects on the optimal investment rules before and after...
Persistent link: https://www.econbiz.de/10011409752
The growing dissatisfaction with perceived distributional inequality and budgetary constraints gave rise to a discussion on the (re-)introduction of wealth taxes. Wealth taxes are typically levied on private wealth, in some countries also on corporate wealth. To avoid misleading statements...
Persistent link: https://www.econbiz.de/10011387385
Persistent link: https://www.econbiz.de/10003597980
This paper analyzes the effects of symmetric and asymmetric taxation on performance-based versus fixed remuneration contracts. I integrate a proportional corporation tax and a proportional wage tax into a binary principal-agent model. The wage tax increases the remuneration costs and makes the...
Persistent link: https://www.econbiz.de/10009011369
This paper deals with the effects of tax rate uncertainty on risk-neutral and risk-averse investment behavior. We analyze effects of stochastic tax rates on both real and financial investment. It emerges that under risk neutrality as well as under risk aversion, increased tax rate uncertainty...
Persistent link: https://www.econbiz.de/10011399893
This paper analyzes the impact of particular loss offset limitations on intrastate and crossborder investment decisions. Investment can be realized in the investor's domestic business, in a foreign branch or in a foreign subsidiary. The relative impact on the optimal real investment alternative...
Persistent link: https://www.econbiz.de/10011449568
The contribution Bach, Corneo, and Steiner (2008) has argued that the richʺ do not pay taxes adequately in relation to their income, finding, for instance, an effective tax rate of only 38.1% for the 0.001% fractile of German income taxpayers in 2001. This result contrasts sharply with the...
Persistent link: https://www.econbiz.de/10003791779
We examine the combined effects of asymmetric taxation and limited liability on optimal risk taking of investors. Given an optimal risk level in the pre-tax case under full liability, loss-offset restrictions reduce, and limited liability enhances the incentives for taking risk. For every degree...
Persistent link: https://www.econbiz.de/10008808263
Persistent link: https://www.econbiz.de/10003498734