A change in the tax law that increases investment incentives for new assets may result in excess returns on new … investment, causing firm value to increase. Alternatively, because the investment incentives apply only to new investments, the … that in general investment incentives have a theoretically ambiguous effect on firm value. Models proposed by Abel (1982 …

and future demand is uncertain. Investment requires the full …consistent with value maximization when investment is irreversible …cost of exercising the investment option. We show that for …

The taxation of corporate assets is well understood to influence investment and firm valuation. This paper explores the … incentives than those implied by the usual static analysis. Simulation results suggest that investment is sensitive to future tax …

unanticipated) changes in the distribution of political power and in economic structure. We focus on the Markov Voting Equilibria …, which require that economic and political changes should take place if there exists a subset of players with the power to … institutions as well as individual types can be ordered, and preferences and the distribution of political power satisfy natural …

-makers not to invest in adaptation measures until after it is too late. In an interdependent world with no intervention by the …

This paper revisits the association between investment and growth. The empirical findings highlight substantial … heterogeneity for the effect of investment on growth and suggest a possible negative association. Results based on a battery of … cross-sectional and time-series regressions show that the link between investment and growth has weakened over time and that …

and investment. However, for growth, higher inequality tends to retard growth in poor countries and encourage growth in …

Over the past decade, a number of researchers have extended conventional models of business fixed investment to … incorporate a role for financial constraints' in determining investment. This paper reviews developments and challenges in this … challenges. First, I describe analytical underpinnings of models of capital-market imperfections in the investment process, and …

-run criteria for capital mobility using time-series and cross-section analysis of saving-investment correlation for twelve …