This paper measures the output and TFP costs of sovereign risk incorporating its impact on firm-level intangible investment. Combining Italian aggregate and firm-level data, we show that firms reduced their investment and reallocated resources away from intangible assets and towards tangible...

Recent years have seen a sustained decline in the labor share around the world. This paper studies this trend by focusing on the effect of corporate income taxes on firm-level labor shares. From 2010 to 2013, the Chinese central government cut the corporate income tax rate in 21 cities for...