Alvarez, Luis H. R.; Koskela, Erkki - In: FinanzArchiv: Public Finance Analysis 63 (2007) 1, pp. 46-53
We analyze the influence of tax progression on optimal investment policy and its value. We show that three possible optimal regimes arise, depending on thenature of the tax policy. If the exogenously given progression threshold lies between the optimal capital stocks in the case of higher and...