like no other at a time of record-breaking debt levels, especially among nonfinancial firms across the world, could …-pronged approach to investigate the relationship between corporate leverage and fixed investment spending. The empirical analysis …, robust to a battery of sensitivity checks, confirm corporate leverage is highly vulnerable to disruptions in profitability …

The paper provides estimates of the long-run, tax-adjusted, user cost elasticity of capital (UCE) in a small open … economy, exploiting three sources of variation in Canadian tax policy: across provinces, industries, and years. Estimates of … the UCE with Canadian data are less prone to the endogeneity problems arising from the effects of tax policy changes on …

We introduce a new suite of macroeconomic models that extend and complement the Debt, Investment, and Growth (DIG …'s properties by analyzing the growth, debt, and distributional consequences of big-push public investment programs with different …

balance of three forces: interest rate pass-through, risk shifting, and leverage. When banks can adjust their capital … structures, a monetary easing leads to greater leverage and lower monitoring. However, if a bank''s capital structure is fixed …

legacy of high debt or leverage. Models of corporate investment behavior based on imperfect capital markets predict that … leverage effects on corporate investment can be substantial and persistent, particularly if leverage exceeds threshold values …

different phases of growth. In this dynamic setting, the effect of a corporate tax on profits varies over time. An increase in … the corporate profit tax rate initially reduces investment, but the effect is reversed over time as the firm adjusts its … financing policy to the new tax rate …