Optimal Dynamic Investment Policy for Different Tax Depreciation Rates and Economic Depreciation Rates

J. L. Wielhouwer, Anja De Waegenaere () and Peter Kort
Additional contact information
J. L. Wielhouwer: Tilburg University

Journal of Optimization Theory and Applications, 2000, vol. 106, issue 1, No 2, 23-48

Abstract: Abstract This paper analyzes the investment policy consequences of incorporating a tax depreciation rate different from the economic depreciation rate. Most often, firms choose their tax depreciation rate in a strategic way. Therefore, it would be a coincidence, should the optimization process lead to a tax depreciation rate that equals the economic depreciation rate. The implications of a difference between tax depreciation rate and economic depreciation rate are investigated in an optimal control model for the determination of the firm investment policy over time.

Keywords: Optimal control; investment policy; tax depreciation; economic depreciation (search for similar items in EconPapers)
Date: 2000
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://link.springer.com/10.1023/A:1004650906179 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
Working Paper: Optimal dynamic investment policy for different tax depreciation rates and economic depreciation rates (2000)
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:spr:joptap:v:106:y:2000:i:1:d:10.1023_a:1004650906179

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/10957/PS2

DOI: 10.1023/A:1004650906179

Access Statistics for this article

Journal of Optimization Theory and Applications is currently edited by Franco Giannessi and David G. Hull

More articles in Journal of Optimization Theory and Applications from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().