Journal of Financial Economics Vol. 14 No. 2 1985
Trading and valuing depreciable assets
Abstract
Optimal policies for selling a risky depreciable asset with proportional taxes and transaction costs are derived for a representative investor who maximizes the market value of his investment. Also calculated are the market value of his investment and the competitive price of the depreciable asset. Depending upon the values of various parameters, the investor realizes either capital gains and no losses, capital losses and no gains, or neither gains nor losses. Additional properties of the solution are derived numerically.
- DOI
- 10.1016/0304-405x(85)90019-4
- Volume
- 14
- Issue
- 2
- Pages
- 283-308
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref