-tax country induces bunching. Such bunching promotes investment incentives in the low-tax as well as the high-tax country. In … equilibrium, affiliates might over-invest and the bunching-related investment effects generate a tendency for too high profit … investment incentives and transfer pricing induces inefficiently low taxes. …

-verifiable managerial effort enhances taxable profits. We show that investment changes following a rise in dividend taxes might not be … investment response, in contrast to insights from previous literature. We provide a testable implication to infer the mode of … investment finance from investment responses. Furthermore, we show that imposing income tax on managerial incentive pay is …

firms in making their investment decisions. We use a revealed preference approach that relies on the pattern of investment … spending - combined with investment theory - to estimate the discount rates used by managers. The standard story predicts that … firms with high stock prices and good investment opportunities should have discount rates that do not differ systematically …

explaining the consumption path after a Marginal Efficiency of Investment shock. We use an otherwise standard medium-scale New …

This paper examines novel survey evidence on firms’ beliefs about macroeconomic tail risk and their role in investment … severe macroeconomic downturn substantially lowers investment, particularly for firms that report higher exposure to the … event. I attribute less than half of the investment response to changes in firms' subjective first and second moments. In a …