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are unexpected and permanent, dividend payments, equity issuance, and aggregate investment rise immediately. By contrast …We develop a dynamic general equilibrium model to study the impact of the 2003 dividend and capital gains tax cuts. In … the model, firms are heterogeneous in productivity and make investment and financing decisions subject to capital …
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are unexpected and permanent, dividend payments, equity issuance, and aggregate investment rise immediately. By contrast …We develop a dynamic general equilibrium model to study the impact of the 2003 dividend and capital gains tax cuts. In … the model, firms are heterogeneous in productivity and make investment and financing decisions subject to capital …
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pay back debt. In the long run, the allocation of undistributed cash to investment, retained earnings, and debt repayment …
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