. Firms are heterogeneous in productivity and make investment and financing decisions subject to capital adjustment costs … expiration date of the tax cuts, dividend payments decrease by about 15 percent. Aggregate investment decreases in the periods …

the model, firms are heterogeneous in productivity and make investment and financing decisions subject to capital … are unexpected and permanent, dividend payments, equity issuance, and aggregate investment rise immediately. By contrast …, when these tax cuts are unexpected and temporary, aggregate investment falls in the short run. This fall allows firms to …

the model, firms are heterogeneous in productivity and make investment and financing decisions subject to capital … are unexpected and permanent, dividend payments, equity issuance, and aggregate investment rise immediately. By contrast …, when these tax cuts are unexpected and temporary, aggregate investment falls in the short run. This fall allows firms to …

tax policies on corporate investment and financing decisions. Facing a tax system with corporate and personal income taxes …, dividend tax and capital gains tax, a firm decides how much to invest and how to finance investment by equity or debt subject … not have long-run effects on a firm's capital formation, but have short-run effects on its investment and financial …

countercyclical and forecast future economic activities because they a®ect ¯rm investment through Tobin's Q. They also forecast future …

Under the real options approach to investment under uncertainty, agents formulate optimal policies under the assumption … that firms’ growth prospects do not vary over time. This paper proposes and solves a model of investment decisions in which …-maximizing investment policy is derived such that in each regime the firm’s investment policy is optimal and recognizes the possiblity of a …