The Dynamic Effects of Tax Law Asymmetries

Alan Auerbach

The Review of Economic Studies, 1986, vol. 53, issue 2, 205-225

Abstract: Under the laws of most countries, a distinction is made between gains and losses by businesses. Losses that must be "carried forward" are subjept to two penalties: a loss of interest, and expiration. Previous examinations have focused on the higher expected tax payments such a tax system without "full loss offset" imposes on risky projects. This paper presents a dynamic analysis of the impact of taxation on investment when gains and losses are treated asymmetrically. The results demonstrate how firm characteristics and the timing of taxes can influence behaviour.

Date: 1986
References: Add references at CitEc
Citations: View citations in EconPapers (70)

Downloads: (external link)
http://hdl.handle.net/10.2307/2297647 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: The Dynamic Effects of Tax Law Asymmetries (1983)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:restud:v:53:y:1986:i:2:p:205-225.

Access Statistics for this article

The Review of Economic Studies is currently edited by Thomas Chaney, Xavier d’Haultfoeuille, Andrea Galeotti, Bård Harstad, Nir Jaimovich, Katrine Loken, Elias Papaioannou, Vincent Sterk and Noam Yuchtman

More articles in The Review of Economic Studies from Review of Economic Studies Ltd
Bibliographic data for series maintained by Oxford University Press ().