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obtain 8% and 1%. Dynamic scoring for the EU-14 shows that 54% of a labor tax cut and 79% of a capital tax cut are self-financing …We compare Laffer curves for labor and capital taxation for the US, the EU-14 and individual European countries, using … US can increase tax revenues by 30% by raising labor taxes and by 6% by raising capital income taxes. For the EU-14 we …
Persistent link: https://www.econbiz.de/10012463307
European nations substitute between employment protection regulations and labor market expenditures (e.g., unemployment … adjustments than other labor insurance mechanisms. Venture capital and private equity investors are especially sensitive to these … labor adjustment costs. Nations favoring labor expenditures as the mechanism for providing worker insurance developed …
Persistent link: https://www.econbiz.de/10012463023
This paper presents a general, nonlinear version of existing multifactor models, such as Longstaff and Schwartz (1992). The novel aspect of our approach is that rather than choosing the model parameterization out of thin air,' our processes are generated from the data using approximation methods...
Persistent link: https://www.econbiz.de/10012471576
This paper analyses the effects of open market operations on interest rates in a model in which agents must pay a fixed cost to exchange assets and cash. Asset markets are endogenously segmented in that some agents choose to pay the fixed cost and some do not. When the fixed cost is zero, the...
Persistent link: https://www.econbiz.de/10012471741
segmentation is partly overcome by global arbitrageurs with limited capital. Our model accounts for the empirically documented …
Persistent link: https://www.econbiz.de/10013172174
Persistent link: https://www.econbiz.de/10012477126
period 1977-83. It is argued that as a consequence of the liberalization of the capital account in Chile in 1979-81, dramatic … inflows of financial capital resulted. These capital inflows generated an important increase in expenditure, and a lower … capital account, and not the adoption of a preannounced rate of devaluation, that generated the dramatic real appreciation of …
Persistent link: https://www.econbiz.de/10012477378
Expectations theories of asset returns may be interpreted as stating either that risk premia are zero, or that they are constant through time. Under the former interpretation, different versions of the expectations theory of the term structure are inconsistent with one another, but I show that...
Persistent link: https://www.econbiz.de/10012477578
This paper examines the hypothesis that financial markets are myopic by studying the term structure of interest rates. White rejecting decisively the traditional expectations hypothesis regarding the term structure, our statistical results also lead us to conclude that long term interest rates...
Persistent link: https://www.econbiz.de/10012477747
Recent empirical research on the term structure of interest rates has shown that the long-term interest rate is well described by adistributed lag on short-term interest rates, but does not conform to the expectations theory of the term structure. It has been suggested that the long rate...
Persistent link: https://www.econbiz.de/10012477896