This paper examines a firm’s investment intensity and timing decisions using a real options approach. The firm is endowed with a perpetual option to invest in a project at any time by incurring an irreversible investment cost at that instant. The amount of the irreversible investment cost determines the intensity of investment with decreasing returns to scale. The project generates a stream of ...

Credit constraints are more frequent among growth companies with large investment opportunities. For the same reason, profit taxes may harm innovative firms more than standard ones. This paper develops a model of heterogeneous firms where an endogenous share opts for innovation and faces credit constraints in the subsequent expansion phase. We emphasize four results: (i) R&D subsidies not only ...

This paper models a capital-exporting country that encounters difficulties in taxing foreignsource income, due to tax evasion problems. The paper compares the country’s optimal effective tax rates on the income from capital invested at home and abroad (including penalties levied on detected tax evaders). It finds that tax evasion abroad does not provide a justification for a relatively low effe...

Article history: Received 5 December 2011 Received in revised form 31 August 2012 Accepted 4 September 2012 Available online 11 September 2012 We investigate international joint ventures in an integrated market using a two-country model with asymmetric sizes. We show that although the domestic firm in the small country is less efficient, it is possible that the government of the small country i...

This paper uses affiliate level data from Swedish multinationals to examine the impact of tax treaties on both overall affiliate sales and the composition of those sales. In line with previous results, we find little evidence for an effect of treaties on the level of total sales. We do, however, find that a tax treaty increases the probability of investment by a firm in a given country. In addi...

The paper presents an econometric accounting of the e¤ective corporate tax rate in Australia for the years 1993 to 1996. The estimation is a panel of Australian …rms that uses a specially gathered …nancial data base. Using …xed and random e¤ects, the model speci…es that the statutory tax rate is estimated as the constant term of the model. An ability to …nd an estimated statutory tax rate that ...

Firms can use capital that they either purchase or lease, but these alternatives are treated differently for tax purposes. This paper derives the demand for leased capital as a function of tax parameters, and uses the model to estimate the responsiveness of leasing to the introduction of bonus depreciation in 2002, finding strong evidence that depreciation allowances influence leasing patterns....

There is a widely held perception that fundamental tax reform would reduce the level of criminal and other “underground” economic activity. The popular argument relies on the idea that replacing the income tax with a sales tax would implicitly tax the return to criminal activity, whereas the return to crime is effectively untaxed by an income tax. This paper finds instead that the impact of tax...

We study the long-run effects of Russia’s anti-alcohol campaign, which dramatically altered relative supply hard and light alcohol in late 1980s. find that this policy shifted young men’s preferences from to decades later, we estimate age at consumers form their tastes. show large beer market expansion 1990s had similar on consumers’ tastes, while older tastes remained largely unchanged. then l...

Serous ovarian cancer (SEOC) is the deadliest gynecologic malignancy. MicroRNAs (miRNAs) are a class of small noncoding RNAs which regulate gene expression and protein translation. MiRNAs are also encoded by viruses with the intent of regulating their own genes and those of the infected cells. This is the first study assessing viral miRNAs in SEOC. MiRNAs sequencing data from 487 SEOC patients ...