Differential taxation implies the existence of different tax rates or tax bases for different types of investments. We analyze the effects of differential taxation on managerial effort and risk taking in a moral-hazard model of the LEN type. The agent selects a portfolio of a high-risk and a...

This paper analyses neutral tax systems under uncertainty and risk neutrality using real option theory. In the case of an option to invest, the investment problem can be formulated before and after taxes, demonstrating the effects of flexibility and irreversibility. A sufficient condition for...

We derive an ex post neutral comprehensive income tax on pension schemes equivalent to a Johansson-Samuelson tax that guarantees nondiscriminatory treatment of lifetime-dependent and other investments. By separately taxing contributions and benefits, our concept does not require any assumptions...