Business Tax Policy under Default Risk

Nicola Comincioli, Sergio Vergalli and Paolo Panteghini

No 291520, ETA: Economic Theory and Applications from Fondazione Eni Enrico Mattei (FEEM)

Abstract: In this article we use a stochastic model with one representative firm to study business tax policy under default risk. We will show that, for a given tax rate, the government has an incentive to reduce (increase) financial instability and default costs if its objective function is welfare (tax revenue).

Keywords: Research; Methods/; Statistical; Methods (search for similar items in EconPapers)
Pages: 22
Date: 2019-07-18
New Economics Papers: this item is included in nep-pbe and nep-rmg
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https://ageconsearch.umn.edu/record/291520/files/NDL2019-011.pdf (application/pdf)

Related works:
Working Paper: Business tax policy under default risk (2019)
Working Paper: Business Tax Policy under Default Risk (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:feemth:291520

DOI: 10.22004/ag.econ.291520

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