Maoz, Yishay - Volkswirtschaftliche Fakultät, … - 2007
Pennings (2000) has shown that the government can speed-up investment by subsidizing the potential investing firm …'s entry cost while taxing the future proceeds from the investment, so as to render the net expected value of its subsidy … program zero. This note argues that while speeding-up the investment timing, this subsidy-tax program also lowers the value of …