Showing 1 - 10 of 194
The basic idea of real options analysis is that flexibility has value. Increasing the flexibility of investmentprojects may therefore substantially increase their value. Ignoring the value of flexibility implies that erroneously investmentprojects without much flexibility may be preferred to...
Persistent link: https://www.econbiz.de/10011124292
Recently, there have been various proposals in Germany to exempt interest income of individuals from progressive income taxation, and to levy a flat source tax, instead. The isolated introduction of a flat tax on interest income would have a significant effect on all investment and financing...
Persistent link: https://www.econbiz.de/10008756489
While corporate income taxation is a major issue in the debate over international finance, economic theory has no clear stance on who bears its burden. On balance, economists seem still more prone to accept that taxing profits does not affect corporations’ outcomes. This paper makes three...
Persistent link: https://www.econbiz.de/10011259062
In this paper we question the idea that the deduction of debt interest is always an effective policy instrument to spur firm investment. We analyze the investment decision in presence of a borrowing constraint on the amount of the debt that the firm can raise. We show that if the debt interest...
Persistent link: https://www.econbiz.de/10009644918
The current debate in corporate taxation is focussing on leveling the tax playing field within the European Union in order to allow companies incorporated in different countries to face the same competitive conditions. However, various elements of corporate tax rules may discriminate against...
Persistent link: https://www.econbiz.de/10005055504
This paper reviews the rationales and facts about corporate tax coordination in Europe. Although statutory tax rates have dramatically declined, revenues collected from corporate taxation are fairly stable and there is so far no evidence of a race-to-the-bottom. The ambiguous results from...
Persistent link: https://www.econbiz.de/10005616901
The paper analyses the relationship between corporate taxes and exports at firm level. We use an integrated dataset that combines, for the period 2004-2006, survey data(Indagine sulle Imprese Manifatturiere) and company accounts for the manufacturing sector to estimate a Probit and a Tobit...
Persistent link: https://www.econbiz.de/10011114425
While corporate taxation is a major issue in the debate over international finance, economic theory has no clear stance on who bears its burden. On balance, economists seem still more prone to accept that taxing profits does not affect corporations' outcomes. This paper makes three cases for...
Persistent link: https://www.econbiz.de/10005786955
This paper examines the effect of salvage market on strategic technology choice and capacity investment decision of two firms that compete on the amount of output they produce under demand uncertainty. A game theoretic model applies such that in the first stage firms choose their production...
Persistent link: https://www.econbiz.de/10011257966
function takes the form of cubic parabola, where the risk aversion behavior ends at the saddle point of the comprehensive … the ambiguity of the departure from risk-neutrality. This ambiguity can produce the ordinary risk seeking behavior as well … as mathematical catastrophes of Veblen-effect’s imprudence and over prudence of family altruism. The comeback to risk …
Persistent link: https://www.econbiz.de/10011267888