Investment and depreciation tax shield under spatial competition: The case of the Greek hotel sector

Vasileios Katavelis and Konstantinos Eleftheriou

Tourism Economics, 2025, vol. 31, issue 3, 510-515

Abstract: Studies examining the effects of spatial competition spillovers on hospitality firms’ decision-making process have been steadily gaining traction. Using a sample of 508 Greek hotels and a Spatial Autoregressive Model (SAR), we examine the consequences of a change in tax depreciation provisions on investment. We find that a reduction in depreciation rates has a negative impact on hospitality firms’ investment decisions, with an additional, reverse effect arising from spillovers of this reduction’s effects on competitors.

Keywords: depreciation; hotel sector; investment; spillover effects; C21; H25; L83 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:31:y:2025:i:3:p:510-515

DOI: 10.1177/13548166241273673

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