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User cost of capital with delayed investment grants
Navas, Jorge; Marín Solano, Jesús
Universitat de Barcelona
The usual assumption when considering investment grants is that grant payments are automatic when investments are undertaken. However, evidence from case studies shows that there can exist some time lag until funds are received by granted firms. In this paper the effects of delays in grant payments on the optimal investment policy of the firm are analyzed. It is shown how these delays lead not only to a higher financing cost but to an effective reduction in the investment grant rate, and in some cases, how benefits from investment grants could be canceled due to interactions with tax effects.
El supuesto habitual cuando se consideran subvenciones a la inversión esque los pagos asociados se reciben automática e instantáneamente cuando seemprenden las inversiones. Sin embargo la evidencia empírica muestra quefrecuentemente existen retrasos en el cobro de las subvenciones. En este trabajo seanalizan los efectos de estos retrasos en la política óptima de la empresa, y sedemuestra que éstos conllevan no únicamente un mayor coste financiero sino unareducción efectiva de la subvención, y que en algunos casos ésta puede ser totalmente absorbida a consecuencia de los efectos fiscales.
2010-05-11
Empreses
Subvencions
Inversions
Pagament
Capital
Enterprises
Subsidies
Investments
Payment
Capital
cc-by-nc-nd, (c) Navas et al., 2006
http://creativecommons.org/licenses/by-nc-nd/3.0/es/
Working Paper
Universitat de Barcelona. Facultat d'Economia i Empresa
         

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