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business investment. To promote economic convergence of Eastern and Western Germany after reunification, bonus depreciation tax … control group, we address the question if and to what extent these investment tax incentives boosted investment. In line with … were cut back in 1997. Moreover, there was a significant reduction in building investment in the year after the expiration …
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We investigate the cost of capital in a model with an agency conflict between inside managers and outside shareholders. Inside ownership reflects the classic tradeoff between incentives and risk diversification, and the severity of agency costs depends on a parameter representing investor...
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