Endogenous Timing and the Taxation of Discrete Investment Choices

Paolo Panteghini

No 723, CESifo Working Paper Series from CESifo

Abstract: This article discusses the effects of taxation on the discrete choice of alternative projects. In particular, it is shown that if taxation affects the optimal timing of irreversible investment, then the discrete choice is distorted as well. This result has both methodological and political implications.

Keywords: effective average tax rate; timing and real options (search for similar items in EconPapers)
JEL-codes: H25 H32 (search for similar items in EconPapers)
Date: 2002
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_723

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