Showing 1 - 10 of 7,218
We study the effects of monetary-policy-induced changes in Tobin's q on corporate investment and capital structure. We … develop a theory of the mechanism, provide empirical evidence, evaluate the ability of the quantitative theory to match the … evidence, and quantify the relevance for monetary transmission to aggregate investment …
Persistent link: https://www.econbiz.de/10013210051
This essay discusses the reasons for and implications of the decline in real interest rates around the world over the past several decades. It suggests that the decline in interest rates is largely explicable from trends in saving, growth, and markups. In this environment, greater government...
Persistent link: https://www.econbiz.de/10013210052
When is a wealth tax preferable to a capital income tax? When is the opposite true? More generally, can capital taxation be structured to improve productivity, incentivize innovation, and ultimately increase welfare? We study these questions theoretically in an infinite-horizon model with...
Persistent link: https://www.econbiz.de/10014576614
, scope, and investment decisions, and we outline their connection to recent macroeconomic and financial trends in the US …
Persistent link: https://www.econbiz.de/10013362030
With fixed costs of participating in the stock market, consumers with high income will participate in the stock market, but consumers with lower income will not participate. If a fully-funded defined-contribution social security system tries to exploit the equity premium by selling a dollar of...
Persistent link: https://www.econbiz.de/10012471011
In the presence of asymmetric information, the stage at which financing decisions are made about investment projects in … channeling savings into investment. This paper compares the implications of two extreme cases regarding the information possessed …
Persistent link: https://www.econbiz.de/10012471014
This paper assesses different organizational forms in terms of their ability to generate information about investment … costlessly hardened' and passed along within the hierarchy. As a concrete application of the theory, the paper discusses the …, this is exactly what the theory would lead one to expect …
Persistent link: https://www.econbiz.de/10012471056
Kaplan and Zingales [1997] provide both theoretical arguments and empirical evidence that investment-cash flow …
Persistent link: https://www.econbiz.de/10012471108
Research and development (R&D) is a key determinant of long run productivity and welfare. A central issue is whether a decentralized economy undertakes too little or too much R&D. We develop an endogenous growth model that incorporates parametrically four important distortions to R&D: the...
Persistent link: https://www.econbiz.de/10012471500
This paper evaluates the effects of fiscal policy on investment using a panel of OECD countries. In particular, we … investigate how different types of fiscal policy affect profits and , as a result, investment. We find a sizable negative effect … of public spending -- and in particular of its public wage component -- on business investment. This result is consistent …
Persistent link: https://www.econbiz.de/10012471581