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. …

with heterogeneous agents and incomplete markets along the lines of Krebs [Krebs, T., 2003. Human Capital Risk and Economic …

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

We examine the role of inventories and capacity utilization (of both capital and labor) for the propagation of business … utilization. First, we find that capital utilization and the flows of services from both capital and labor are procyclical, and … inventories and the rate of capital utilization are mostly complements, while inventories and the rate of labor utilization are …