We study optimal fiscal policy in a small open economy (SOE) with sovereign and private default risk. The SOE …. We characterize a class of environments in which the tax on labor goes to zero in the long run, while the tax on capital …

evidence of any interaction between risk, industry trade exposure, and occupation-specific human capital …In this paper, we empirically assess the causal links between trade and individual income risk and study the role that … and the linkage between trade and risk: While, on average, individuals with higher levels of industry- or occupation …

execution and the risk is a result of price movements during a more gradual trading. The paper shows that the trade-off between …Transaction costs in trading involve both risk and return. The return is associated with the cost of immediate … risk and return in optimal execution should reflect the same risk preferences as in ordinary investment. The paper develops …

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 …. We find strong evidence for continued capital-skill complementarity in the most recent data, and that the model continues …

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 …

-adjusted rate of return to capital. If it is lower than the growth rate, it indicates that the risk-adjusted rate of return to …Second, even in the absence of fiscal costs, public debt reduces capital accumulation, and may therefore have welfare … costs. I show that welfare costs may be smaller than typically assumed. The reason is that the safe rate is the risk …

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 …