Existing models of corporate "short-termism" rely on an exogenously imposed, suboptimal management objective function. This paper endogenizes both managers' concern for short-term stock prices and the resulting distorsions. We consider a standard agency problem between corporate managers and...

This paper uses a simple one-sector general equilibrium model to compare the marginal excess burden of taxes on labour income and taxes on capital. It is shown that if there is a positive tax on capital, conventional measures of the marginal excess burden of taxes on labour income such as that...