{"page":"239-289","citation":{"mla":"Fahr, René, et al. “Can Tax Rate Changes Accelerate Investment under Entry and Exit Flexibility? – Insights from an Economic Experiment.” FinanzArchiv / Public Finance Analysis, vol. 78, no. 1–2, 2022, pp. 239–89.","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 / Public Finance Analysis}, author={Fahr, René and Janssen, Elmar A. and Sureth-Sloane, Caren}, year={2022}, pages={239–289} }","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.” FinanzArchiv / Public Finance Analysis 78, no. 1–2 (2022): 239–89.","ama":"Fahr R, Janssen EA, Sureth-Sloane C. Can Tax Rate Changes Accelerate Investment under Entry and Exit Flexibility? – Insights from an Economic Experiment. FinanzArchiv / Public Finance Analysis. 2022;78(1-2):239-289.","apa":"Fahr, R., Janssen, E. A., & Sureth-Sloane, C. (2022). Can Tax Rate Changes Accelerate Investment under Entry and Exit Flexibility? – Insights from an Economic Experiment. FinanzArchiv / Public Finance Analysis, 78(1–2), 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,” FinanzArchiv / Public Finance Analysis, vol. 78, no. 1–2, pp. 239–289, 2022.","short":"R. Fahr, E.A. Janssen, C. Sureth-Sloane, FinanzArchiv / Public Finance Analysis 78 (2022) 239–289."},"type":"journal_article","year":"2022","issue":"1-2","intvolume":" 78","_id":"29049","volume":78,"jel":["H25","H21","C91"],"date_created":"2021-12-20T08:23:13Z","status":"public","keyword":["Economic ExperimentM","Investment Decisions","Tax Effects","Timing Flexibility","Uncertainty"],"publication":"FinanzArchiv / Public Finance Analysis","author":[{"first_name":"René","full_name":"Fahr, René","last_name":"Fahr"},{"last_name":"Janssen","first_name":"Elmar A.","full_name":"Janssen, Elmar A."},{"id":"530","last_name":"Sureth-Sloane","orcid":" 0000-0002-8183-5901","full_name":"Sureth-Sloane, Caren","first_name":"Caren"}],"user_id":"530","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"}],"article_type":"original","language":[{"iso":"eng"}],"date_updated":"2022-11-13T09:58:10Z","publication_status":"published","department":[{"_id":"187"}],"title":"Can Tax Rate Changes Accelerate Investment under Entry and Exit Flexibility? – Insights from an Economic Experiment"}