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We exploit plausibly exogenous variation in the tax consequences of renegotiating U.S. syndicated loans to isolate the effect of renegotiation costs on initial contract terms. TD9599 materially reduced the tax burden of renegotiating U.S. syndicated loans, while leaving the taxation of...
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This paper develops a model in which workers are heterogeneous in their intrinsic motivation to work at a firm. We … when workers’ motivation is private information. While posting a higher wage increases the probability of filling the … expected worker's motivation. …
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