and tax-permitted depreciation, is considered. Both convex and concave survival functions can be accommodated. Three …-relevant accounting capital and true depreciation, (ii) mis-indexation of depreciation allowances, (iii) incomplete deductibility of …-exponential depreciation schedules are forced, by `approximation devices', to fit into the exponential decay schedule. -- Capital taxation …

We analyze how tax incentives (bonus depreciation) affect real investment choices of firms by exploiting an exogenous … longest regular depreciation periods in absence of bonus depreciation. The impact on equipment investment is significantly …) and relatively low tax planning costs (large firms) enhancing the effect of bonus depreciation on investment. There is …