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 …

. 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 …

We present an analytically tractable general equilibrium business cycle model that features micro-level investment … fixed cost distribution, under which lumpy investment can be important: (i) The steady-state elasticity of the adjustment …

We study how investors' preferences for robustness influence corporate investment, financing, and compensation … ambiguity aversion lowers Tobin’s q, the average investment, and investment volatility. The entrepreneur values the project at …