This paper discusses some of the recent developments in growth theory, doing so from the perspective of a small open … access to the world capital market; (ii) the introduction of government capital , and (iii) the two-sector production model …, pioneered by Lucas. In the original analysis, the two capital goods relate to physical and human capital and in the …

techniques used in research on optimal policy, including rational expectations theory, timeconsistency analysis, the Lucas …

This paper presents a comprehensive treatment of the cost-of-capital approach for analyzing the economic impact of tax … policy. This approach has provided an intellectual impetus for reforms of capital income taxation in the United States and …. The cost-of-capital approach presented in this paper shows that important opportunities for tax reform still remain. This …

We investigate the cost of capital in a model with an agency conflict between inside managers and outside shareholders … depends on a parameter representing investor protection. In equilibrium, the marginal cost of capital is a weighted average of …, inside ownership, and the marginal cost of capital. We discuss implications for the determinants of firm size, the …