This paper investigates the combined effect of nominal interest rates and taxes on the use and maturity structure of corporate debt. The net tax gain from use of corporate debt is proportional to nominal interest rates, so that behavioral responses should be larger when interest rates are...

There is growing empirical evidence showing that taxes encourage use of debt in large profitable firms and discourage it in less profitable firms. There has been debate, though, on the source of any non-tax costs from debt finance offsetting the tax advantages of debt. This paper lays out...

Summarizes tax differences and explores their implications for the nature of cross-border activity that will develop between the United States and Mexico.