Abstract
Studies examining the effects of spatial competition spillovers on hospitality firms’ decision-making process have been steadily gaining traction. Using a sample of 508 Greek hotels and a Spatial Autoregressive Model (SAR), we examine the consequences of a change in tax depreciation provisions on investment. We find that a reduction in depreciation rates has a negative impact on hospitality firms’ investment decisions, with an additional, reverse effect arising from spillovers of this reduction’s effects on competitors.
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