We develop a new proxy for worldwide NOL benefits that more accurately captures their value and variation across jurisdictions. We validate this proxy by confirming that it correctly predicts future cash tax reductions. We compare this proxy to a commonly used measure based on Compustat data and...

We examine the association between thousands of state and local firm-specific tax subsidies and business activity in the surrounding county, measured as the number of employees, aggregate wages, per capita employment, per capita wages, and number of business establishments. Using three different...

We examine the relation between corporate cash holdings and tax net operating loss carryforwards (NOLs). Prior literature demonstrates that firms should distribute cash to shareholders, rather than retain the cash and generate passive investment income taxed at both corporate and investor...

Heterogeneous firm productivity seems to provide an argument for governments to pursue 'pick-the-winner' strategies by subsidizing highly productive firms more, or taxing them less, than their less productive counterparts. We appraise this argument by studying the optimal choice of effective tax...

Heterogeneous firm productivity seems to provide an argument for governments to pursue 'pick-the-winner' strategies by subsidizing highly productive firms more, or taxing them less, than their less productive counterparts. We appraise this argument by studying the optimal choice of effective tax...