Di Corato, Luca
- Institutionen för ekonomi, Sveriges lantbruksuniversitet
Rapport2014
Investment stimuli under government present-biased time preferences
Di Corato, Luca
Sammanfattning
This paper examines the net benefit accruing to a present-biased government contemplating the option of speeding up investment using a tax cut or an investment subsidy as an incentive. The literature generally suggests the use of an investment subsidy rather than a tax cut. However, this study shows that, depending on the degree of present-biasedness, it may be more advantageous for the government to provide a tax cut.
Nyckelord
Investment; Tax reduction; Investment subsidy; Quasi-hyperbolic discounting; Real options;
Publicerad i
Working Paper Series / Swedish University of Agricultural Sciences, Department of Economics
2014, nummer: 2014:03
Utgivare: Swedish University of Agricultural Sciences, Department of Economics
SLU författare
UKÄ forskningsämne
Nationalekonomi
Permanent länk till denna sida (URI)
https://res.slu.se/id/publ/53736