@techreport{NBERw1553,
 title = "Valuing the Government's Tax Claim on Risky Corporate Assets",
 author = "Saman Majd and Stewart C. Myers",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "1553",
 year = "1985",
 month = "February",
 URL = "http://www.nber.org/papers/w1553",
 abstract = {This paper explores the effects of tax asymmetries on the value of risky capital investments made by corporations.The government's claim on the firm is shown to be equivalent to a portfolio of options on the firm's revenues. The tax law's provisions for carrying tax losses forward and backward are introduced, necessitating a numerical solution for the value ofthe government's claim. The results show that asymmetric taxation of operating gains and losses can significantly affect the after-tax net present value of corporate investment opportunities.},
}