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Asymmetric Taxation under Incremental and Sequential Investment

  • Paolo Panteghini

This article 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.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2002/wp-cesifo-2002-05/717.pdf
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 717.

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Date of creation: 2002
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Handle: RePEc:ces:ceswps:_717
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