Date of This Version
7-9-2019
Abstract
In this article we use a stochastic model with one representative firm to study business tax policy under default risk. We will show that, for a given tax rate, the government has an incentive to reduce (increase) financial instability and default costs if its objective function is welfare (tax revenue).
Recommended Citation
Comincioli, Nicola; Vergalli, Sergio; and Panteghini, Paolo M., "Business Tax Policy under Default Risk" (July 09, 2019). Fondazione Eni Enrico Mattei Working Papers. Paper 1270.
https://services.bepress.com/feem/paper1270
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