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

This paper revisits capital-skill complementarity and inequality, as in Krusell, Ohanian, Rios-Rull and Violante (KORV … in labor's share of income that were not present in KORV. We study both labor share of gross income (as in KORV), and … income net of depreciation. We also use non-farm business sector output as an alternative measure of production to real GDP …

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 …

by machines or software. Few have discussed the implications of the reverse: firms' ability to replace capital with … a simple real options model where permissive labor regulations allow firms to take advantage of capital …-labor substitutability by replacing 'rigid' capital with 'flexible' labor. The model highlights institutional, technological, and …

neoclassical model of investment with physical capital, quasi-fixed labor, and two types of intangible capital, knowledge and brand … capital as inputs. We estimate the structural model using firm-level data on U.S. publicly traded firms and use the estimated … input for firm value varies across industries and over time. On average, physical capital accounts for 30% to 40% of firm …

effects of target-setting on capital allocation, in a context in which such concerns have risen to particular prominence in …

Capital reallocation is procyclical, despite measured productive reallocative opportunities being acyclical, or even … countercyclical. This paper reviews the advances in the literature studying the causes and consequences of capital reallocation (or … lack thereof). We provide a comprehensive set of capital reallocation stylized facts for the US, and an illustrative model …

US can increase tax revenues by 30% by raising labor taxes and by 6% by raising capital income taxes. For the EU-14 we …We compare Laffer curves for labor and capital taxation for the US, the EU-14 and individual European countries, using … 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 …

We study the dynamic taxation of capital and labor in the Ramsey model under the assumption that taxes and public good … viewpoint of the citizens involves long-run capital taxation …