Article ID Journal Published Year Pages File Type
7388302 Review of Economic Dynamics 2016 20 Pages PDF
Abstract
This paper develops a model of investment decisions in which uncertainty about a one-time change in tax policy induces the firm to temporarily stop investing-to adopt a wait-and-see policy. After the uncertainty is resolved, the firm exploits the tabled projects, generating a temporary investment boom.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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Wait-and-see: Investment options under policy uncertainty
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