-based investment incentives on capital spending and real activity. In particular, we investigate the effects of a temporary expensing … allowance on investment in partial and general equilibrium and challenge the conventional view, advanced by Auerbach and Summers …) that such incentives can be destabilizing. Second, we consider the relative impact of two types of tax-based investment …

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 independent …

This article studies the effects of corporate tax asymmetries on irreversible investment. We discuss an asymmetric tax …

This paper provides new evidence on the response of business investment to tax incentives. I use the variation provided … depreciation allowances applicable to investment undertaken outside the three main Mexican metropolitan areas. I show that … investment is very sensitive to changes in tax variables and interest rates, with an estimated elasticity of investment with …

effective average tax rates and can thereby provide a subsidy to unprofitable projects. We assess the specific design features … of different regimes against the possible policy aim of improving the incentives to undertake R&D investment in a country …