The theoretical literature suggests that when taking tax effects into account, debt ought to be preferable to equity. However, there are no uniform predictions of the size of this tax benefit (tax shield) in comparison to an opposing increasing cost of debt (especially insolvency costs). The...

Mehr Arbeitsplätze im unteren Bereich des Arbeitsmarktes werden häufig durch die hohe Steuerbelastung verhindert. Derhalb wurden in mehreren europäischen Ländern Initiativen gestartet, um in diesem Teil des Arbeitsmarktes neue Arbeitsplätze zu schaffen. In diesem Artikel werden diese...

This paper studies the interaction between capital income taxation and a means tested age pension in the context of an overlapping generations model, calibrated to the UK economy. Recent literature has suggested a rehabilitation of capital income taxation (Conesa et al. (2009)), predicated on...