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Firms under Tax Asymmetry : Price Uncertainty and Hedging

Author

Listed:
  • Eldor, R
  • Zilcha, I

Abstract

We study the optimal decisions regarding production and hedging of a competitive firm under price uncertainty. The firm faces asymmetric tax and has access to futures markets.

Suggested Citation

  • Eldor, R & Zilcha, I, 1997. "Firms under Tax Asymmetry : Price Uncertainty and Hedging," Papers 5-97, Tel Aviv.
    • Handle: RePEc:fth:teavfo:5-97
    as

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    References listed on IDEAS

    as
    1. Ethier, Wilfred, 1973. "International Trade and the Forward Exchange Market," American Economic Review, American Economic Association, vol. 63(3), pages 494-503, June.
    2. Mian, Shehzad L., 1996. "Evidence on Corporate Hedging Policy," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 31(3), pages 419-439, September.
    3. Gershon Feder & Richard E. Just & Andrew Schmitz, 1980. "Futures Markets and the Theory of the Firm under Price Uncertainty," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 94(2), pages 317-328.
    4. Holthausen, Duncan M, 1979. "Hedging and the Competitive Firm under Price Uncertainty," American Economic Review, American Economic Association, vol. 69(5), pages 989-995, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    DECISION MAKING ; TAXATION ; BUSINESS ORGANIZATION;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

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