The authors document that the U.S. non-financial corporate sector became a net lender in the 2000s, using aggregate and firm-level data. They develop a structural model with investment, debt, and equity. Debt is fiscally advantageous but subject to a no-default borrowing constraint. Equity...

The authors investigate the impact of the tax treatment of owner-occupied housing on urban form in an economy in which high- and low-income households choose among city and suburban communities. Because housing tax policies differentially affect the relative, after-tax price of housing for high-...