inflation rate, with and with- out an increase in the risk premium on equities, was then simulated with a number of model … cost was 3 percentage points less than that for corporate capital) and the manner in which inflation magnifies it (the … finance instruments would overcome this reallocation but at the expense of corporate capital. Only a reduction in inflation or …

's q theory of investment. As Tobin has explained, aggregate investment can be expected to depend in a stable way on q, the … return on physical capital raise its market value and cause increased investment until equilibrium is restored. Although … models linking the stock market to investment have been estimated, they have not previously been used to examine the impact …

This paper presents econometric evidence on the effect of tax incentives on business Investment in the United States in … the period from 1953 through1978. The analysis emphasizes that the Interaction of inflation and existing tax rules has … contributed substantially to the decline of business investment since the late 1960's.Because the investment process is far too …

The present paper analyses the effect of the interaction between tax rules and inflation on the size and allocation of … show that, with current U.S. tax laws, an increase in the rate of inflation reduces the equilibrium amount of business … inflation lowers the real net-of-tax rate of return to the provider of business capital. In a richer model than the current one …

consumption or investment. In this way, aggregate demand would be maintained by substituting public consumption for private … JamesTobin, relies on increasing the rate of inflation and making money less attractive relative to real capital. In Tobin …. This paper will examine ways of increasing capital intensity without raising the rate of inflation. The analysis will also …

. Technological/ markup heterogeneity explains a limited fraction in China, but a potentially large share in the US …

last two decades is highly correlated with that of corporate investment efficiency. China's stock market appears to be … access it. Yet this high alpha amounts to an inflated cost of equity capital, constraining the investment of China's smaller … informativeness will be important to increase China's investment efficiency and fuel its continued economic growth. Finally, we …

these results by studying China's 2009 VAT reform, which lowered the tax cost of investment and reduced partial …We incorporate the lumpy nature of firm-level investment into the study of how tax policy affects investment behavior …. We show that tax policies can directly impact the lumpiness of investment. Extensive-margin responses to tax policy are …

China presents several macroeconomic patterns that appear inconsistent with standard stylized facts about economic … Chinese economy, including its unusually low labor share and unusually high saving and investment rates. Interestingly, the …