Steuern und Risiko als substitutionale oder komplementäre Determinanten unternehmerischer Investitionspolitik?

Rainer Niemann and Caren Sureth

No 51, arqus Discussion Papers in Quantitative Tax Research from arqus - Arbeitskreis Quantitative Steuerlehre

Abstract: This paper analyzes the impact of taxation on risk-taking under irreversibility. We integrate a simple tax system into a real option model. Under irreversibility and risk neutrality, raising the tax rate can either increase or reduce risk-taking. We numerically derive tax-volatility indifference curves, i.e. combinations of volatility and tax rate, which induce identical investment thresholds. Using this novel illustration technique it is possible to identify conditions for an unambiguous influence of taxes on risk-taking. Our simulations indicate that raising the tax rate increases risk-taking under low volatility. Implementing a ?nal withholding tax on capital income tends to reduce risky investment. Our findings extend the well-known tax effects on investment from certainty with respect to uncertainty, irreversibility, and risk-taking.

JEL-codes: H21 H25 (search for similar items in EconPapers)
Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:arqudp:51

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