Depreciation rules and value invariance with extractive firms
Hartwick, John M., Karp, Larry and Van Long, Ngo (2002) Depreciation rules and value invariance with extractive firms. Journal of Economic Dynamics and Control, 26, (1), 99-116. (doi:10.1016/S0165-1889(00)00019-1).
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Description/Abstract
The application of Samuelson's theorem on value invariance to the case of intertemporally optimizing firms is shown to require a judiciously chosen economic depreciation formula which depends on both current stock and current flow variables, in order to prevent the firms from changing their actions in the face of the tax regime. We illustrate by deriving depreciation rules which achieve non-distortingness of actions and value-invariance for resource-extracting firms.
| Item Type: | Article |
|---|---|
| Additional Information: | JEL classification codes: H25; D92 |
| ISSNs: | 0165-1889 (print) |
| Related URLs: | |
| Subjects: | H Social Sciences > HB Economic Theory |
| Divisions: | University Structure - Pre August 2011 > School of Social Sciences > Economics |
| Item ID: | 39690 |
| Date Deposited: | 29 Jun 2006 |
| Last Modified: | 12 Jul 2012 10:13 |
| Contributors: | Hartwick, John M. (Author) Karp, Larry (Author) Van Long, Ngo (Author) |
| Date: | 2002 |
| Additional Information: | JEL classification codes: H25; D92 |
| Status: | Published |
| URI: | http://eprints.soton.ac.uk/id/eprint/39690 |
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