In models with irreversible investment, increasing uncertainty about prices has been shown to increase the required … rate of return (hurdle rate) and delay investment (e.g., Pindyck, 1988). One serious form of uncertainty faced by firms, a … past work that tax policy uncertainty increases the expected hurdle price ratio and delays investment. This is because tax …

-human capital falls to approximately its initial net of tax level, and steady-state human capital investment plans are therefore …

This paper explores implications of differential personal taxation for corporate investment and dividend decisions. The … personal tax advantage of dividend deferral causes shareholders to generally prefer greater investment in real assets under … shareholders in different tax brackets at times to disagree over optimal investment and dividend policies under internal financing …

We examine the impact of tax policy uncertainty on the irreversible investment decisions of a monopolistically … competitive firm. We consider the impact of tax policy in terms of the investment tax credit (ITC) as well as the stochastic tax … stimulative impact on investment; (ii) greater policy volatility results in greater variability of investment; (iii) a …