of general equilibrium that includes a debt-related agency cost; uses the comparative statics and dynamics of changing …

An examination of the business cycle implications of productive public capital in a two-sector, dynamic general … capital tax is more variable than the labor tax--features also observed in annual U.S. data. …

capital in the U.S. economy over the last 70 years, with an application to examining some possible causes of the slowdown in …

surprising since real business cycle theory suggests that the return to capital should be measured by the return to aggregate … market capital, not stock market returns. We construct a quarterly time series of the after-tax return to business capital … volatility in the return to capital (relative to the volatility of output). We consider several departures from the benchmark …

capital. This allows us to incorporate novel elements from the microfoundations literature on trading with frictions …

We study the macroeconomic implications of the debt overhang distortion. In our model, the distortion arises because … investment is non-contractible—when a firm borrows funds, the debt contract cannot specify or depend on the firm’s future level … of investment. After the debt contract is signed, the probability that the firm will default on its debt obligation acts …