This paper develops and tests the hypothesis that accounting rules mitigate the effect of tax policy on firm investment … incentives that do and do not affect them. Investment tax credits, which do affect accounting profits, have larger effects on … investment than accelerated depreciation, which does not. This difference in estimated effects is not obviously driven by …

Policymakers frequently propose to use capital tax reform to stimulate investment and increase labor earnings. This … tax cut caused zero change in corporate investment, with an upper bound elasticity with respect to one minus the top … specifications, samples, and investment measures. I similarly find no impact on employee compensation. The lack of detectable real …

shifting in explaining variation in pension fund investment policy among U.S. firms. …

the model, firms are heterogeneous in productivity and make investment and financing decisions subject to capital … are unexpected and permanent, dividend payments, equity issuance, and aggregate investment rise immediately. By contrast …, when these tax cuts are unexpected and temporary, aggregate investment falls in the short run. This fall allows firms to …