It is well-known that taxes affect risky investment decisions. Analytical studies indicate that tax rate increases can … foster (accelerate) investment if there is flexibility, in particular when an exit option is available. We design an … underlying model, we find accelerated investment, which is often considered as an increased willingness to invest, on tax rate …

It is well-known that taxes affect risky investment decisions. Analytical studies indicate that tax rate increases can … foster (accelerate) investment if there is flexibility, in particular when an exit option is available. We design an … underlying model, we find accelerated investment, which is often considered as an increased willingness to invest, on tax rate …

-tax country induces bunching. Such bunching promotes investment incentives in the low-tax as well as the high-tax country. In … equilibrium, affiliates might over-invest and the bunching-related investment effects generate a tendency for too high profit … investment incentives and transfer pricing induces inefficiently low taxes. …

tax imposed on owners of small and medium sized businesses affects their firms' investment and employment decisions …