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I study how different types of subsidization affect investment decisions in a laboratory experiment. Even though the expected pro t is identical in all treatments, I find highly significant differences between them. In particular, when investment alternatives get subsidized with tax credits the...
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We provide evidence that subsidy types that are identical in monetary terms differ in their behavioral responses and … than under grant. Both subsidy types are essentially very similar, only the mechanism of the subsidy application is … desired investment decisions by using a certain subsidy type. Particularly, our results suggest that when policymakers are …
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In this paper, we use an exogenous variation in tax regulations to analyze the impact of bonus depreciation programs on business investment. To promote economic convergence of Eastern and Western Germany after reunification, bonus depreciation tax incentives were granted for investments in...
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