reduced the top tax rate on capital gains. This paper explores the likely effect of JGTRRA on the composition of returns on … response to the recovery in earnings. In the longer run, the tax cuts will principally reduce companies’ cost of capital …, fostering capital deepening, when the economy is at full employment. With constant returns to scale prevailing at full …

capital movement (an absence of capital controls), and an independent monetary policy. The authors present evidence that Hong … this theory because the HK dollar has been pegged to the U.S. dollar since 1983 and Hong Kong does not impose any capital …

The correspondence between the demand for capital and various measures of the return on assets, the cost of capital … explanations, this paper considers the consequences of allowing for declining returns to capital--a declining marginal efficiency … of capital schedule (MEC). This modification not only relaxes the connection between the demand for capital and many of …

The correspondence between the demand for capital and various measures of Tobin’s q often is tenuous (Abel and … changes in the optimal stock of capital must correspond consistently to changes in marginal q. …

Within optimal investment programs, the accumulation of capital is a stable function of marginal q. Much of the … interest in q, however, derives from its potential to reflect the demand for capital when the optimal program changes. If the … marginal return on capital diminishes as capital increases, the correspondence between marginal q and the optimal stock of …