search query: @author SCHLESINGER, H. / total: 5
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| Author: | Eeckhoudt, L. Gollier, C. Schlesinger, H. |
| Title: | The no-loss offset provision and the attitude towards risk of a risk-neutral firm |
| Journal: | Journal of Public Economics
1997 : AUG, VOL. 65:2, p. 207-218 |
| Index terms: | ECONOMICS ATTITUDES RISK |
| Language: | eng |
| Abstract: | This paper examines how discrete tax brackets induce an otherwise risk-neutral firm to behave in a very specific risk-averse manner. The authors show how the firm's investment decisions relate to various factors, such as other firm revenue, tax rates, tax exemption levels and project risk. In particular, such a firm is shown to exhibit first-order risk aversion, with a possible zero demand for a risky investment, even when the expected excess return is positive. |
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