heterogeneous tax sensitivity of firm-level investments across firm types. We econometrically test the theoretical predictions …, taking account of selection of firms into different regimes. We find important differences in the tax sensitivity of …

on financially constrained firms; (ii) ACE and cashflow tax systems, which are investment neutral in the neoclassical … banks, investment is subject to double moral hazard and the timing of tax payments becomes important. The ACE system gives … tax relief at the return stage and provides better incentives than a cash-flow tax which gives tax relief upfront …

The paper studies the effects of tax policy on venture capital activity. Entrepreneurs pursue a single high risk … managerial advice. It considers differential wage and capital income taxes, a comprehensive income tax, incomplete loss offset …