We analyze the impact of progressive taxation on irreversible investment under uncertainty. We show that if tax … exemption is lower than sunk cost, higher tax rate will decelerate optimal investment by increasing the optimal investment … investment threshold is a positive function of volatility, but independent of tax rate. For "medium" volatilities it is …

for further research, especially on the motivations behind investment decisions. Investments in market economies are …) and the General Theory (1936), as well as follow-ups in the postKeynesian approaches and others dealing with “fundamental … society. By shaping business concerns and strategies, social institutions have a major impact on investment decisions in a …