Arbeitspapier
A simple explanation for the unfavorable tax treatment of investment costs
The evidence shows that in most countries the present value of depreciation allowances is less than 100% of the cost of capital. In this article we use a real-option model with debt financing, and show that less favorable depreciation allowances are offset by tax benefits arising from debt financing. Allowing partial deduction of capital cost is thus a necessary condition for investment neutrality to hold.
- Sprache
-
Englisch
- Erschienen in
-
Series: CESifo Working Paper ; No. 1784
- Klassifikation
-
Wirtschaft
Bankruptcy; Liquidation
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Panteghini, Paolo M.
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Economic Studies and ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2006
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Panteghini, Paolo M.
- Center for Economic Studies and ifo Institute (CESifo)
Entstanden
- 2006
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