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https://hdl.handle.net/10419/122982
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A note on depreciation allowances, taxation and risk-taking
[journal article]
Abstract Incentive effects of depreciation rules for risk-taking are considered. If true economic depreciation is stochastic, pro fit taxes with expected-value depreciation allowances decrease risk-taking. However, if real capital is used only in the risky sector, more generous depreciation allowances increa... view more
Incentive effects of depreciation rules for risk-taking are considered. If true economic depreciation is stochastic, pro fit taxes with expected-value depreciation allowances decrease risk-taking. However, if real capital is used only in the risky sector, more generous depreciation allowances increase risk-taking. It is also shown that the incentive effect of risk-taking-revenue taxes to increase the risky fraction of investment is stronger in the case of more generous depreciation allowances. (author's abstract)... view less
Keywords
taxation; risk behavior; risk; incentive system; economy; investment; taxes; write-off
Classification
Public Finance
Document language
English
Publication Year
1990
Page/Pages
p. 161-165
Journal
Finnish economic papers, 3 (1990) 2
Handle
https://hdl.handle.net/10419/122982
ISSN
0784-5197
Licence
Deposit Licence - No Redistribution, No Modifications