Gourio, Francois; Miao, Jianjun - In: Review of Economic Dynamics 14 (2011) 2, pp. 368-383
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 …