Panteghini Paolo. Corporate Taxation in a Dynamic World

Springer, 2007. — 235 p. — ISBN: 978-3-540-71405-7.When I decided to write this book, I was not fully aware of the reason why I was doing so. During the entire year spent in writing it, however, I had the opportunity to reflect upon its benefits for my professional maturity. First of all, this book has enabled me to write a sort of balance sheet of the first decade I have devoted to the study of corporate taxation. Quite surprisingly I have realized that
there has been at least a minimum of coherence in my research. More importantly, however, I have realized the full meaning of Socrates’ well-known motto: "I am the wisest man alive, for I know one thing, and that is that I know nothing". In reading other scholars’ contributions I have just realized that I know virtually nothing: I think that this will be a good stimulus for my future research.Basic issues
The real option approach
Real call options
A two-period model
The threshold point
Real put options
Tax neutrality
The Brown condition in a static context
The Brown condition in a real option context
An emerging literature
The entrepreneurial decision
The entrepreneurial choice without taxation
The worker’s value function
The firm’s value function
Optimal start-up timing
The start-up decision under taxation
Entry and the option to quitThe geometric Brownian motion
The calculation of (2.3)
The calculation of (2.5)
An alternative approach to the optimal timing
problem
The calculation of (2.14)