1. Agroindustry location under uncertainty: The effects of business taxes.
- Author
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Tan, Lin-Ti
- Subjects
- *
BUSINESS tax , *INDUSTRIAL location , *UNCERTAINTY , *ECONOMICS - Abstract
This note employs a unifying approach to examine the impacts of various forms of business taxes on an agroindustrial firm's choice of plant location under uncertainty. It shows that, if the production function is homogeneous of degree one, then the lump-sum and proportional profit taxes are spatially neutral for any risk-averse agroindustrial firm operating with a random raw material price. For cases where the taxes are spatially non-neutral, unambiguous effects regarding an agroindustrial firm's locational response to the imposition of business taxes have also been provided. In addition, we demonstrate that the spatial effects of business taxes on agroindustrial firms differ sharply from their non-agroindustrial counterparts. [ABSTRACT FROM AUTHOR]
- Published
- 2003
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