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can be measured. The focus is on measures derived from economic theory. Two measures are derived - effective marginal and … average tax rates - which reflect different forms of investment decisions. A number of extensions to be basic model are …
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We investigate the cost of capital in a model with an agency conflict between inside managers and outside shareholders. Inside ownership reflects the classic tradeoff between incentives and risk diversification, and the severity of agency costs depends on a parameter representing investor...
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