Showing 1 - 10 of 10
This paper analyzes the extent to which firms use trade credit to reallocate capital in response to tax incentives. Tax-induced differences in pretax returns encourage the use of trade credit to reallocate capital from firms facing low tax rates to those facing high tax rates. Evidence from the...
Persistent link: https://www.econbiz.de/10013106075
This paper evaluates evidence of the impact of outbound foreign direct investment (FDI) on domestic investment rates …. OECD countries with high rates of outbound FDI in the 1980s and 1990s exhibited lower domestic investment than other … countries, which suggests that FDI and domestic investment are substitutes. U.S. time series data tell a very different story …
Persistent link: https://www.econbiz.de/10012784973
stock market bubble by issuing new equity. The bubble reduces the user-cost of capital and increase real investment. Using … real investment …
Persistent link: https://www.econbiz.de/10012785641
investment; the impact of uncertainty on investment occurs primarily through changes in credit spreads; and innovations in credit … spreads have a strong effect on investment, irrespective of the level of uncertainty. These findings raise a question … financial shocks. By influencing the effective supply of credit, both types of shocks exert a powerful effect on investment and …
Persistent link: https://www.econbiz.de/10013055504
This paper examines the investment effects of tax subsidies for which some assets and not others are eligible …. Distortionary tax subsidies encourage firms to concentrate investments in tax-favored assets profitability of investment and …, which in turn discourages investment. Borrowing rates react so strongly that aggregate investment may rise very little, or …
Persistent link: https://www.econbiz.de/10013249553
investment at the firm-level. A large body of recent empirical work attributes these findings to capital market imperfections … variables may appear as an explanatory variable for investment if they contain information about the expected marginal value of … capital. In this paper, we show how structural models of investment with costly external finance can be used to identify and …
Persistent link: https://www.econbiz.de/10013243428
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 …
Persistent link: https://www.econbiz.de/10013312521
We embed the microeconomic decisions associated with investment under uncertainty, capacity utilization, and machine … mean-preserving spread in the productivity of investment raises aggregate investment, productivity, and output. Increases … in uncertainty have important dynamic implications, causing sustained increases in investment and hours and a medium …
Persistent link: https://www.econbiz.de/10014072172
and investment, we are able to capture many of the key empirical properties of Germany and Japan's postwar transitions … capital-output ratio, rising rates of investment and employment, and moderate rates of return to capital …
Persistent link: https://www.econbiz.de/10013230828
Harberger triangles are used to calculate the efficiency costs of taxes, government regulations, monopolistic practices … evaluation of deadweight loss estimates led to new theories of rent-seeking and other inefficiencies of economies with multiple …
Persistent link: https://www.econbiz.de/10013237933