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Asymmetric Taxation under Incremental and Sequential Investment

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  • Paolo Panteghini

Abstract

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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  • Paolo Panteghini, 2002. "Asymmetric Taxation under Incremental and Sequential Investment," CESifo Working Paper Series 717, CESifo.
    • Handle: RePEc:ces:ceswps:_717
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    corporate taxation; real options;

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