A note on depreciation allowances, taxation and risk-taking

Konrad, Kai A.

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@article{ Konrad1990,
 title = {A note on depreciation allowances, taxation and risk-taking},
 author = {Konrad, Kai A.},
 journal = {Finnish economic papers},
 number = {2},
 pages = {161-165},
 volume = {3},
 year = {1990},
 issn = {0784-5197},
 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 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)},
 keywords = {Besteuerung; taxation; Risikoverhalten; risk behavior; Risiko; risk; Anreizsystem; incentive system; Ökonomie; economy; Investition; investment; Steuern; taxes; Abschreibung; write-off}}