A note on depreciation allowances, taxation and risk-taking

Konrad, Kai A.

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%T A note on depreciation allowances, taxation and risk-taking
%A Konrad, Kai A.
%J Finnish economic papers
%N 2
%P 161-165
%V 3
%D 1990
%@ 0784-5197
%X 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)
%C MISC
%G en
%9 Zeitschriftenartikel
%W GESIS - http://www.gesis.org
%~ SSOAR - http://www.ssoar.info