On the Neutrality of the Resource Rent Tax

Robert Fraser

The Economic Record, 1993, vol. 69, issue 1, 56-60

Abstract: This paper investigates the existence of an investtnent'neutral Resource Rent Tax using a model of optimal investment to extract an unknown quantity of resource stock. This model is solved by numerical methods to show that the levels of profit margin and resource stock uncertainty are key parameter values in determining both the existence and the characteristics of an investment‐neutral Resource Rent Tax.

Date: 1993
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https://doi.org/10.1111/j.1475-4932.1993.tb01798.x

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