The paper begins with presentation of a methodology for computing rental costs of capital under any tax regime.Tax law … inflation on interest rates and the allocation of real capital. The model allocates a fixed private capital stock among various … classes of nonresidential and residential capital, depending upon the rental costs for the capital components, the price …

Second, even in the absence of fiscal costs, public debt reduces capital accumulation, and may therefore have welfare …-adjusted rate of return to capital. If it is lower than the growth rate, it indicates that the risk-adjusted rate of return to … capital is in fact low. The average risky rate however also plays a role. I show how both the average risky rate and the …

A framework is developed with what we call technology capital. A country is a measure of locations. Absent policy … constraints, a firm owning a unit of technology capital can produce the composite output good using the unit of technology capital … is what constrains the number of units it operates using this unit of technology capital. If it has two units of …

This paper argues for introducing the role of capital malleability into the analysis of environmental policies. The … outcomes reveal differences between results under separate assumptions regarding the malleability of capital. When capital is … imperfectly malleable a carbon policy is less effective than under the assumption of perfect malleability of capital. Therefore …

We scrutinize the monetary transmission mechanism in New-Keynesian models, focusing on the role of capital, the key …

interactions associated with the movement of capital and polluting activities from one economy to another. We use a simple … dynamical model describing capital accumulation along the lines of a fixed-savings-ratio Solow-type model capable of producing … or regions. The basic mechanism underlying the movements of capital across space is the quest for locations where the …

reallocation of capital across sectors is costly. The two-sector model leads to a richer array of possible responses of aggregate …