Similar Search Results

Progressive Taxation and Irreversible Investment Under Uncertainty

Koskela, Erkki; Alvarez, Luis Hernan Radomiro - 2021

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 threshold, while if tax exemption exceeds sunk cost, three...

Persistent link: https://www.econbiz.de/10013318776

On the tree-cutting problem under interest rate and forest value uncertainty

Alvarez, Luis H. R.; Koskela, Erkki - 2003

Persistent link: https://www.econbiz.de/10011505937

Does risk aversion accelerate optimal forest rotation under uncertainty?

Alvarez, Luis H. R.; Koskela, Erkki - 2004

period, when forest value is also stochastic following geometric Brownian motion and landowners are risk-averse. We provide … volatility increases, while higher risk aversion decreases the optimal harvesting threshold. Moreover, under risk aversion … increased forest value volatility decreases the optimal harvesting threshold, while it has no effect under risk neutrality …

Persistent link: https://www.econbiz.de/10011450936

Irreversible investment under interest rate variability : new results

Alvarez, Luis H. R.; Koskela, Erkki - 2002

The current extensive literature on irreversible investment decisions makes the assumption of constant interest rate. In this paper we study the impact of interest rate and revenue variability on the decision to carry out an irreversible investment project. Given the generality of the considered...

Persistent link: https://www.econbiz.de/10011408807

Irreversible Investment Under Interest Rate Variability : New Results

Alvarez, Luis Hernan Radomiro; Koskela, Erkki - 2021

The current extensive literature on irreversible investment decisions makes the assumption of a constant interest rate. In this paper we study the impact of interest rate and revenue variability on the decision to carry out an irreversible investment project. Given the generality of the...

Persistent link: https://www.econbiz.de/10013320672