[{"article_type":"original","_id":"29049","department":[{"_id":"187"}],"user_id":"96670","status":"public","type":"journal_article","date_updated":"2026-04-09T07:25:41Z","volume":78,"author":[{"last_name":"Fahr","full_name":"Fahr, René","first_name":"René"},{"first_name":"Elmar A.","last_name":"Janssen","full_name":"Janssen, Elmar A."},{"orcid":" 0000-0002-8183-5901","last_name":"Sureth-Sloane","full_name":"Sureth-Sloane, Caren","id":"530","first_name":"Caren"}],"page":"239-289","intvolume":"        78","citation":{"ama":"Fahr R, Janssen EA, Sureth-Sloane C. Can Tax Rate Changes Accelerate Investment under Entry and Exit Flexibility? – Insights from an Economic Experiment. <i>FinanzArchiv / European Journal of Public Finance</i>. 2022;78(1-2):239-289.","apa":"Fahr, R., Janssen, E. A., &#38; Sureth-Sloane, C. (2022). Can Tax Rate Changes Accelerate Investment under Entry and Exit Flexibility? – Insights from an Economic Experiment. <i>FinanzArchiv / European Journal of Public Finance</i>, <i>78</i>(1–2), 239–289.","mla":"Fahr, René, et al. “Can Tax Rate Changes Accelerate Investment under Entry and Exit Flexibility? – Insights from an Economic Experiment.” <i>FinanzArchiv / European Journal of Public Finance</i>, vol. 78, no. 1–2, 2022, pp. 239–89.","short":"R. Fahr, E.A. Janssen, C. Sureth-Sloane, FinanzArchiv / European Journal of Public Finance 78 (2022) 239–289.","bibtex":"@article{Fahr_Janssen_Sureth-Sloane_2022, title={Can Tax Rate Changes Accelerate Investment under Entry and Exit Flexibility? – Insights from an Economic Experiment}, volume={78}, number={1–2}, journal={FinanzArchiv / European Journal of Public Finance}, author={Fahr, René and Janssen, Elmar A. and Sureth-Sloane, Caren}, year={2022}, pages={239–289} }","ieee":"R. Fahr, E. A. Janssen, and C. Sureth-Sloane, “Can Tax Rate Changes Accelerate Investment under Entry and Exit Flexibility? – Insights from an Economic Experiment,” <i>FinanzArchiv / European Journal of Public Finance</i>, vol. 78, no. 1–2, pp. 239–289, 2022.","chicago":"Fahr, René, Elmar A. Janssen, and Caren Sureth-Sloane. “Can Tax Rate Changes Accelerate Investment under Entry and Exit Flexibility? – Insights from an Economic Experiment.” <i>FinanzArchiv / European Journal of Public Finance</i> 78, no. 1–2 (2022): 239–89."},"jel":["H25","H21","C91"],"publication_status":"published","keyword":["Economic ExperimentM","Investment Decisions","Tax Effects","Timing Flexibility","Uncertainty"],"language":[{"iso":"eng"}],"abstract":[{"text":"This study investigates the conditions under which tax rate changes accelerate risky investments.\r\nWhile tax rate increases are often expected to harm investment, analytical\r\nstudies find tax rate increases may foster investment under flexibility.We design a theorybased\r\nexperimentwith a binomial random walk and entry–exit flexibility.We find accelerated\r\ninvestment upon tax rate increases irrespective of an exit option, but no corresponding\r\nresponse to tax cuts. This asymmetry may be due to tax salience and mechanisms\r\nfrom irreversible choice under uncertainty. Given this evidence of unexpected tax-reform\r\neffects, tax policymakers should carefully consider behavioral aspects.","lang":"eng"}],"publication":"FinanzArchiv / European Journal of Public Finance","title":"Can Tax Rate Changes Accelerate Investment under Entry and Exit Flexibility? – Insights from an Economic Experiment","date_created":"2021-12-20T08:23:13Z","year":"2022","quality_controlled":"1","issue":"1-2"}]