We analyze the impact of progressive taxation on irreversible investment under uncertainty. We show that if tax … exemption is lower than sunk cost, higher tax rate will decelerate optimal investment by increasing the optimal investment … investment threshold is a positive function of volatility, but independent of tax rate. For medium volatilities it is independent …

We analyze the impact of progressive taxation on irreversible investment under uncertainty. We show that if tax … exemption is lower than sunk cost, higher tax rate will decelerate optimal investment by increasing the optimal investment … investment threshold is a positive function of volatility, but independent of tax rate. For "medium" volatilities it is …

The current extensive literature on irreversible investment decisions makes the assumption of constant interest rate … investment project. Given the generality of the considered valuation problem, we first provide a thorough mathematical … interest rate variability may have a profound decelerating or accelerating impact on investment demand depending on whether the …

The current extensive literature on irreversible investment decisions makes the assumption of a constant interest rate … investment project. Given the generality of the considered valuation problem, we first provide a thorough mathematical … interest rate variability may have a profound decelerating or accelerating impact on investment demand depending on whether the …

The current extensive literature on irreversible investment decisions makes the assumption of constant interest rate … investment project. Given the generality of the considered valuation problem, we first provide a thorough mathematical … interest rate variability may have a profound decelerating or accelerating impact on investment demand depending on whether the …

We analyze the impact of progressive taxation on irreversible investment under uncertainty. We show that if tax … exemption is lower than sunk cost, higher tax rate will decelerate optimal investment by increasing the optimal investment … investment threshold is a positive function of volatility, but independent of tax rate. For "medium" volatilities it is …