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spillover and timeinconsistency. We find that both distortions reduce the equilibrium asset return and delay investment in … financial incentives, implemented in our model by a regulator and by a long-term investment fund. The regulator commands carbon … pricing and the fund provides subsidies to reduce technology costs or to boost investment returns. The investment subsidy …
Persistent link: https://www.econbiz.de/10013214337
shock. Our estimated model uncovers a central role for investment in the transmission mechanism of monetary policy, as high … MPCs amplify the investment response in the data. This force also generates a procyclical response of consumption to … investment shocks, leading our model to infer a central role for these shocks as a source of business cycles …
Persistent link: https://www.econbiz.de/10012842965
complementary investment in production activities. Our theoretical findings are motivated by existing empirical evidence and a fresh …
Persistent link: https://www.econbiz.de/10013213779
investment in an international infrastructure capital, the stock of which accumulates over time. Depending on the trade costs and … consideration, the governments carry out a dynamic game of public investment. We show that the dynamic equilibrium of the policy …
Persistent link: https://www.econbiz.de/10013314918
will be different for the two firm types. This in turn will affect the investment incentives and distort capital and labour …
Persistent link: https://www.econbiz.de/10013316813
and only if the investment elasticity of the tax base is lower than the investment elasticity of the apportionment factor …
Persistent link: https://www.econbiz.de/10013316828
that anticipate the actual tax base incorrectly. I analyze the effects of stochastic taxation on investment behavior in a … the effects of both tax base and tax rate uncertainty, the investment's tax payment is modelled as a stochastic process …. Increased tax uncertainty has an ambiguous impact on investment timing. The view that tax uncertainty depresses real investment …
Persistent link: https://www.econbiz.de/10013316889
equilibrium, general-equilibrium effects overturn this result: a monetary expansion increases the investment of high …
Persistent link: https://www.econbiz.de/10013311708
Macroeconomic news announcements are elaborate and multi-dimensional. We consider a framework in which jumps in asset prices around macroeconomic news and monetary policy announcements reflect both the response to observed surprises in headline numbers and latent factors, reflecting other...
Persistent link: https://www.econbiz.de/10012908673
We develop an asset-pricing model with endogenous corporate policies that explains how inflation jointly impacts real asset prices and corporate default risk. Our model includes two empirically grounded nominal frictions: fixed nominal coupons and sticky profitability. Taken together, these two...
Persistent link: https://www.econbiz.de/10012892192