Objekt-Metadaten
Crunch Time: A policy to avoid the „Announcement Effect“ when terminating a subsidy / by Marc Gürtler and Gernot Sieg. - (Working Paper Series / Economics Department ; No. 1)

Autor/en :Gürtler, Marc
Sieg, Gernot
Institut / Verlag :Braunschweig : Inst. für Volkswirtschaftslehre, 2008
Fakultät :01 - Carl-Friedrich Gauß-Fakultät
 
Dokumente :
PDF-Dokument
 
Umfang :19 S.
Sprache :englisch
Kurzfassung :If the government announces the termination of a subsidy paid for an irreversible investment under uncertainty, investors might decide to realize their investment so as to obtain the subsidy. These investors might have postponed an investment if future payment were assured. Depending on the degree of uncertainty and the time preference, the termination of the subsidy might cost the government more in toto than granting the subsidy on a continuing basis. A better strategy would be to reduce the subsidy in parts rather than to terminate the subsidy in its entirety.
Schlagwörter :Irreversibility, Investment, Announcement effect, Subsidy, Tax
Sachgebiet :330 Wirtschaft
Typ :Publikationen der TU Braunschweig
Format :Text/Dokument
 
URN:NBN :urn:nbn:de:gbv:084-21506
Zitierfähige URL :http://www.digibib.tu-bs.de/?docid=00023543