Year: 1999
Author: Niemann, Rainer
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 119 (1999), Iss. 3 : pp. 351–372
Abstract
This paper analyses investment decisions under uncertainty and risk neutrality before and after taxes. Using real option theory it is possible to quantify the effects of uncertainty and irreversibility of decisions. Under the assumption of a perpetual option, analytical solutions for this investment problem can be found before and after taxes. These solutions provide the means to recognize tax effects and thus the derivation of neutral tax systems of which the cash flow tax and the Johansson-Samuelson-tax emerge as special cases.
Journal Article Details
Publisher Name: Global Science Press
Language: Multiple languages
DOI: https://doi.org/10.3790/schm.119.3.351
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 119 (1999), Iss. 3 : pp. 351–372
Published online: 1999-03
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 22