the model, firms are heterogeneous in productivity and make investment and financing decisions subject to capital … are unexpected and permanent, dividend payments, equity issuance, and aggregate investment rise immediately. By contrast …, when these tax cuts are unexpected and temporary, aggregate investment falls in the short run. This fall allows firms to …

—stimulated corporate investment and increased labor earnings, using a quasi-experimental design and U.S. corporate tax returns from years … 1996-2008. I estimate that the tax cut caused zero change in corporate investment and employee compensation. Economically …, the statistical precision challenges leading estimates of the cost-of-capital elasticity of investment, or undermines …

This paper derives analytical measures of the combined effects of tax changes and adjustment costs on investment and …

, many firms with high marginal rates of surtax were in the growth industries of the day. The sensitivity of investment …Recent theoretical approaches have linked shifts in firms' internal funds and investment spending, holding constant … underlying investment opportunities. An important impediment to convincing tests of these models is the lack of firm-level data …

for investment in equipment and find that the responsiveness of Swedish firms to the user cost is quite similar to that … impact of the reform on investment is likely to have been minor and had little to do with the contemporaneous sharp drop in … investment …

effects of taxes on capital formation and welfare in a life-cycle growth model. In contrast to the results of partial …-human capital falls to approximately its initial net of tax level, and steady-state human capital investment plans are therefore …

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 …

uncorrelated with their growth performance. Second, countries that drastically reduce private incentives to invest, severely hurt … their growth performance. In our model, the effects of taxation on growth are highly non-linear. Low or moderate tax rates … have a very small impact on long-run growth rates. But as tax rates rise, their negative impact on growth rises …