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Endogenous Timing and the Taxation of Discrete Investment Choices

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  • Paolo Panteghini

Abstract

This article discusses the effects of taxation on the discrete choice of alternative projects. In particular, it is shown that if taxation affects the optimal timing of irreversible investment, then the discrete choice is distorted as well. This result has both methodological and political implications.

Suggested Citation

  • Paolo Panteghini, 2002. "Endogenous Timing and the Taxation of Discrete Investment Choices," CESifo Working Paper Series 723, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_723
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    File URL: http://www.cesifo-group.de/DocDL/723.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Paolo M. Panteghini, 2003. "A dynamic measure of the effective tax rate," Economics Bulletin, AccessEcon, vol. 8(15), pages 1-7.
    2. Luis H. R. Alvarez & Erkki Koskela, 2005. "Progressive Taxation and Irreversible Investment under Uncertainty," CESifo Working Paper Series 1377, CESifo Group Munich.
    3. Paolo Panteghini, 2004. "Wide vs. Narrow Tax Bases under Optimal Investment Timing," CESifo Working Paper Series 1246, CESifo Group Munich.
    4. repec:ebl:ecbull:v:8:y:2003:i:15:p:1-7 is not listed on IDEAS
    5. Paolo Panteghini & Guttorm Schjelderup, 2003. "Competing for Foreign Direct Investments: A Real Options Approach," CESifo Working Paper Series 929, CESifo Group Munich.

    More about this item

    Keywords

    effective average tax rate; timing and real options;

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm

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