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Asymmetric Taxation under Incremental and Sequential Investment


This paper discusses the effects of an asymmetric tax scheme on incremental and sequential investment strategies. The tax base is equal to the firm's return, net of an imputation rate. When the firm's return is less than this rate, however, no tax refunds are allowed. This scheme is neutral under both income and capital uncertainty. Copyright 2005 Blackwell Publishing Inc..

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Article provided by Association for Public Economic Theory in its journal Journal of Public Economic Theory.

Volume (Year): 7 (2005)
Issue (Month): 5 (December)
Pages: 761-779

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Handle: RePEc:bla:jpbect:v:7:y:2005:i:5:p:761-779
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