Article ID Journal Published Year Pages File Type
5054977 Economic Modelling 2012 6 Pages PDF
Abstract
► Literature says investment subsidy dominates tax cut in stimulating investment. ► We show this is not true if government and private firm use different discount rates. ► Optimal incentive could be tax cut, investment subsidy, or a combination of the two. ► We illustrate all three cases.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
Attracting private investment: Tax reduction, investment subsidy, or both?
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