Neutral Taxation under Uncertainty - a Real Options Approach
This paper analyses neutral tax systems under uncertainty and risk neutrality using real option theory. In the case of an option to invest, the investment problem can be formulated before and after taxes, demonstrating the effects of flexibility and irreversibility. A sufficient condition for tax neutrality is the equivalence of the investment problems before and after taxes. Under this condition, neutral depreciation schedules can be derived for every kind of interest taxation without explicitly solving the emerging free-boundary problems. Two special cases of neutral tax systems are the cash flow tax and the Johansson-Samuelson tax. For the validity of the Johansson-Samuelson theorem under uncertainty and irreversibility it is necessary to extend the depreciation base on the real option.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 56 (1999)
Issue (Month): 1 (March)
|Contact details of provider:|| Web page: http://www.mohr.de/fa |
|Order Information:|| Postal: Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany|
When requesting a correction, please mention this item's handle: RePEc:mhr:finarc:urn:sici:0015-2218(199903)56:1_51:ntuu-a_2.0.tx_2-i. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Wolpert)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.