capital adjustment cost functions identical to those assumed by Hayashi (1982) and (ii) explain the weak empirical …

We develop a dynamic general equilibrium model to study the impact of the 2003 dividend and capital gains tax cuts. In … the model, firms are heterogeneous in productivity and make investment and financing decisions subject to capital … adjustment costs, equity issuance costs, and collateral constraints. We show that when the dividend and capital gains tax cuts …

capital can be owned only by local oligarchs, whose status is subject to political risk. Political risk decreases local … capital and wages. Risk-averse oligarchs acquire safe foreign assets for insurance, thus increasing wages in other countries …

coauthors have argued that the high investment-saving correlation reflects imperfect capital mobility. This view, however, is … capital markets have become more open and integrated. I conclude, therefore, that long-term capital mobility tests based on … investment-saving correlation analysis are not likely to provide an accurate measure of capital mobility. …

model with two sectors in production -- the private and the state sectors -- that features capital market imperfections on …

investment decisions of firms. Firms ability to raise equity is about 73% of what it would have been under free capital markets …. If firms can finance investment by issuing fresh equity, rather than with internal funds or debt, average capital stock … is about 6% higher over a period of 20 years. Transitory interest rate shocks have a sustained impact on capital …

are associated with protracted transition periods, especially when technology growth is capital-embodied. Simulations of … variation in observed growth rates, particularly for investment, capital accumulation, and employment. The simulations suggest …