BEA’s national economic statistics provide a comprehensive view of U.S. production, consumption, investment, exports and imports, and income and saving. These statistics are best known by summary measures such as gross domestic product (GDP), corporate profits, personal income and spending,...

There are substantial differences in output per worker across states that persist over time. This studydemonstrates that differences in state taxation of capital income, capital ownership, and consumption canexplain why differences in labor productivity can persist. First, state tax policies...

This paper examines the impact of capital gains taxation on firms’ investment and financing decisions. We develop a real options model in which the timing of investment, the decision to default, and the firm’s capital structure are endogenouslyand jointly determined. Our analysis shows that...

We propose an equity finance model with agency problems and investigate the relationship between dividend taxation and inefficient investments. Contrary to both the old and the new view of dividend taxation, a fall in the dividend tax rate is found to improve corporate governance by increasing...

Three years after the seminal work of Black and Scholes [3] on the pricing of European options,Scholes [18] presented a paper in which the impact of taxation on the value of an option is analyzed.We restart this discussion in a simple binomial setting emphasizing the economic principlesof...

The influence of capital gains taxes on investment decisions is a central issue of accounting and public finance research. However, the implications of capital gains taxes on investors' willingness to invest in irreversible projects with entry and exit flexibility have not yet been a focal...

This paper investigates the influence of different systems of current income and capital gains taxation on investor's decisions to either carry out an investment in corporate shares or to invest funds alternatively on the capital market.Three basic tax systems are analyzed, a classical corporate...

This paper analyzes the numerical impact of different surplus distribution mechanisms on the risk exposure of a life insurance company selling with profit life insurance policies with a cliquet-style interest rate guarantee. Three representative companies are considered, each using a different...