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Transitional Dynamics of Dividend and Capital Gains Tax Cuts

Gourio, Francois; Miao, Jianjun - National Bureau of Economic Research (NBER) - 2010

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 adjustment costs, equity issuance costs, and collateral...

Persistent link: https://www.econbiz.de/10008548775

A Simple Approach for Deciding When to Invest

Berk, Jonathan B. - National Bureau of Economic Research (NBER) - 1998

A straightforward generalization of the simple net present value rule that correctly predicts when to invest in two classes of projects that can be delayed is derived. The first class consists of projects for which the option to delay derives its value exclusively from uncertainty about interest...

Persistent link: https://www.econbiz.de/10005774574

Real Options in a Dynamic Agency Model, with Applications to Financial Development, IPOs, and Business Risk

PHILIPPON, Thomas; Sannikov, Yuliy - National Bureau of Economic Research (NBER) - 2007

We study investment options in a dynamic agency model. Moral hazard creates an option to wait and agency conflicts affect the timing of investment. The model sheds light, theoretically and quantitatively, on the evolution of firms' dynamics, in particular the decline of the failure rate and the...

Persistent link: https://www.econbiz.de/10005710340

Comparing the Investment Behavior of Public and Private Firms

Asker, John; Farre-Mensa, Joan; Ljungqvist, Alexander - National Bureau of Economic Research (NBER) - 2011

We evaluate differences in investment behavior between stock market listed and privately held firms in the U.S. using a rich new data source on private firms. Listed firms invest less and are less responsive to changes in investment opportunities compared to observably similar, matched private...

Persistent link: https://www.econbiz.de/10009278252

Firm Heterogeneity and the Long-run Effects of Dividend Tax Reform

Gourio, Francois; Miao, Jianjun - National Bureau of Economic Research (NBER) - 2009

To study the long-run effect of dividend taxation on aggregate capital accumulation, we build a dynamic general equilibrium model in which there is a continuum of firms subject to idiosyncratic productivity shocks. We find that a dividend tax cut raises aggregate productivity by reducing the...

Persistent link: https://www.econbiz.de/10005025642

Do Powerful Politicians Cause Corporate Downsizing?

Cohen, Lauren; Coval, Joshua D.; Malloy, Christopher - National Bureau of Economic Research (NBER) - 2010

This paper employs a new empirical approach for identifying the impact of government spending on the private sector. Our key innovation is to use changes in congressional committee chairmanship as a source of exogenous variation in state-level federal expenditures. In doing so, we show that...

Persistent link: https://www.econbiz.de/10008628363

Taxes and Growth in a Financially Underdeveloped Country: Evidence from the Chilean Investment Boom

Parker, Jonathan A.; Hsieh, Chang-Tai - National Bureau of Economic Research (NBER) - 2006

This paper argues that taxation of retained profits is particularly distortionary in an economy with good growth prospects and poorly developed financial markets because it primarily reduces the investment of financially constrained firms, investment that has marginal product greater than the...

Persistent link: https://www.econbiz.de/10004969348

Why Doesn't Technology Flow from Rich to Poor Countries?

Cole, Harold; Greenwood, Jeremy; Sanchez, Juan M. - National Bureau of Economic Research (NBER) - 2015

What determines the technology that a country adopts? While many factors affect technological adoption, the efficiency of the country's financial system may also play a significant role. To address this question, a dynamic contract model is embedded into a general equilibrium setting with...

Persistent link: https://www.econbiz.de/10011123623

Business Strategy and the Management of Firms

Yang, Mu-Jeung; Kueng, Lorenz; Hong, Bryan - National Bureau of Economic Research (NBER) - 2015

Business strategy can be defined as a firm's plan to generate economic profits based on lower cost, better quality, or … new products. The analysis of business strategy is thus at the intersection of market competition and a firm's efforts to … interaction of firms' business strategies and their managerial practices using a unique, detailed dataset on business strategy …

Persistent link: https://www.econbiz.de/10011123643

A Personal Touch: Text Messaging for Loan Repayment

Karlan, Dean; Zinman, Jonathan; Morten, Melanie - National Bureau of Economic Research (NBER) - 2012

We worked with two microlenders to test impacts of randomly assigned reminders for loan repayments in the "text messaging capital of the world". We do not find strong evidence that loss versus gain framing or messaging timing matter. Messages only robustly improve repayment when they include the...

Persistent link: https://www.econbiz.de/10011188547