investment decisions of internally growing and mature firms. Since aggregate investment is dominated by these latter two … investment.Anticipated dividend tax changes, on the other hand, allow firms to engage in inter-temporal tax arbitrage so as to … reduce investors' tax burden. This can significantly distort aggregate investment. Anticipated tax cuts (increases) delay …

reduce investors' tax burden. This can significantly distort aggregate investment. Anticipated tax cuts (increases) delay …, can significantly increase (decrease) aggregate investment for periods after the tax change … irrelevant for the investment decisions of internally growing and mature firms. Since aggregate investment is dominated by these …