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On the Neutrality of the Resource Rent Tax *
Author(s) -
FRASER ROB
Publication year - 1993
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1993.tb01798.x
Subject(s) - neutrality , economics , microeconomics , stock (firearms) , resource (disambiguation) , profit (economics) , investment (military) , economic rent , tax basis , econometrics , natural resource economics , monetary economics , public economics , tax reform , state income tax , computer science , mechanical engineering , computer network , philosophy , epistemology , politics , law , political science , gross income , engineering
This paper investigates the existence of an investtnent'neutral Resource Rent Tax using a model of optimal investment to extract an unknown quantity of resource stock. This model is solved by numerical methods to show that the levels of profit margin and resource stock uncertainty are key parameter values in determining both the existence and the characteristics of an investment‐neutral Resource Rent Tax.