Korinek, Anton; Stiglitz, Joseph E. - In: Journal of Public Economics 93 (2009) 1-2, pp. 142-159
We analyze the effects of changes in dividend tax policy using a life-cycle model of the firm, in which new firms first access equity markets, then grow internally, and finally pay dividends when they have reached steady state. We find that unanticipated permanent changes in tax rates have only...