Tax Incentives for Investment Projects in the Russian Economy
The paper is devoted to the analysis of tax incentives for investment projects in real sector of Russian economy. Such investment projects have a number of specific features as: irreversibility of investment; uncertainty on future economic situation and project's perspectives (including political risk); a possibility to postpone financing a project for some time until appearance of more favorable situation (investment waiting). The state (or the region) can actively influence the investors behavior with the help of tax exemptions ( tax holidays). The paper studies the model of investors behavior which includes all above mentioned features. The authors described explicitly the optimal moment for investment that maximizes net present value (from the project). The derived equations are used for both theoretical analysis and numerical calculations.
|Date of creation:||22 Jun 1999|
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