The Dynamic Effects of Tax Law Asymmetries

S-Tier
Journal: Review of Economic Studies
Year: 1986
Volume: 53
Issue: 2
Pages: 205-225

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Under the laws of most countries, a distinction is made between gains and losses by businesses. Losses that must be "carried forward" are subjept to two penalties: a loss of interest, and expiration. Previous examinations have focused on the higher expected tax payments such a tax system without "full loss offset" imposes on risky projects. This paper presents a dynamic analysis of the impact of taxation on investment when gains and losses are treated asymmetrically. The results demonstrate how firm characteristics and the timing of taxes can influence behaviour.

Technical Details

RePEc Handle
repec:oup:restud:v:53:y:1986:i:2:p:205-225.
Journal Field
General
Author Count
1
Added to Database
2026-01-24