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 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.

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.

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,...

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 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.