Proportional Profit Taxes and Resource Management under Production Uncertainty
The impact of proportional profit taxes on input use is analyzed under conditions of production uncertainty and risk aversion. Two kinds of profit taxes are considered: proportional profit taxes with perfect loss offset and revenue-neutral profits taxes. Their impact on optimal input use is examined...
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| Format: | Article |
| Language: | English |
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Western Agricultural Economics Association
1999-12-01
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| Series: | Journal of Agricultural and Resource Economics |
| Subjects: | |
| Online Access: | https://ageconsearch.umn.edu/record/30794 |
| _version_ | 1818032557353074688 |
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| author | Giannis Karagiannis |
| author_facet | Giannis Karagiannis |
| author_sort | Giannis Karagiannis |
| collection | DOAJ |
| description | The impact of proportional profit taxes on input use is analyzed under conditions of production uncertainty and risk aversion. Two kinds of profit taxes are considered: proportional profit taxes with perfect loss offset and revenue-neutral profits taxes. Their impact on optimal input use is examined under various forms of production uncertainty, such as the Just-Pope model and the cases of multiplicative and additive uncertainty. It is shown that the structure of risk attitudes, the form of production uncertainty, the underlying (stochastic) technical interdependencies, and the risk-input relations are crucial features in determining the impact of proportional profit taxes on optimal input use. |
| first_indexed | 2024-12-10T06:09:16Z |
| format | Article |
| id | doaj.art-c405e579528f40b6b0df9fe74722c28c |
| institution | Directory Open Access Journal |
| issn | 1068-5502 2327-8285 |
| language | English |
| last_indexed | 2024-12-10T06:09:16Z |
| publishDate | 1999-12-01 |
| publisher | Western Agricultural Economics Association |
| record_format | Article |
| series | Journal of Agricultural and Resource Economics |
| spelling | doaj.art-c405e579528f40b6b0df9fe74722c28c2022-12-22T01:59:37ZengWestern Agricultural Economics AssociationJournal of Agricultural and Resource Economics1068-55022327-82851999-12-0124252553510.22004/ag.econ.3079430794Proportional Profit Taxes and Resource Management under Production UncertaintyGiannis KaragiannisThe impact of proportional profit taxes on input use is analyzed under conditions of production uncertainty and risk aversion. Two kinds of profit taxes are considered: proportional profit taxes with perfect loss offset and revenue-neutral profits taxes. Their impact on optimal input use is examined under various forms of production uncertainty, such as the Just-Pope model and the cases of multiplicative and additive uncertainty. It is shown that the structure of risk attitudes, the form of production uncertainty, the underlying (stochastic) technical interdependencies, and the risk-input relations are crucial features in determining the impact of proportional profit taxes on optimal input use.https://ageconsearch.umn.edu/record/30794production uncertaintyproportional profit taxesrisk aversion |
| spellingShingle | Giannis Karagiannis Proportional Profit Taxes and Resource Management under Production Uncertainty Journal of Agricultural and Resource Economics production uncertainty proportional profit taxes risk aversion |
| title | Proportional Profit Taxes and Resource Management under Production Uncertainty |
| title_full | Proportional Profit Taxes and Resource Management under Production Uncertainty |
| title_fullStr | Proportional Profit Taxes and Resource Management under Production Uncertainty |
| title_full_unstemmed | Proportional Profit Taxes and Resource Management under Production Uncertainty |
| title_short | Proportional Profit Taxes and Resource Management under Production Uncertainty |
| title_sort | proportional profit taxes and resource management under production uncertainty |
| topic | production uncertainty proportional profit taxes risk aversion |
| url | https://ageconsearch.umn.edu/record/30794 |
| work_keys_str_mv | AT gianniskaragiannis proportionalprofittaxesandresourcemanagementunderproductionuncertainty |