Evaluating the minimum asset tax on corporations: an option pricing approach

• 成果类型: Article
• 署名作者: van Wijnbergen, S; Estache, A
• 署名单位: University of Amsterdam; The World Bank
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/S0047-2727(98)00050-4
• 发表日期: 1999
• 页码: 75-96
• 关键词: corporate tax; minimum asset tax; uncertainty; options

摘要

King-Fullerton methodology cannot assess the minimum-asset tax because it cannot handle uncertainty. We present an alternative based on option pricing, and show how carryover rules, depreciation conventions, and uncertainty affect the MAT burden. Using Brazilian data, we show (A) because of the high intersectoral variance of returns on capital, the MAT does not reduce sectoral distortions; (B) while high variance raises the MAT burden, high risk firms are not hit harder by the MAT: high-risk firms also have a high rate of return, which reduces the impact of the MAT. (C) 1999 Elsevier Science S.A. All rights reserved.